ADX Energy Limited (ASX:ADX) (PNK:ADXRF) is pleased to announce the lodgment of a prospectus with ASIC for an Initial Public Offering ("IPO") incorporating ADX' gold and base metal assets. This IPO enables ADX to continue its stated transformation into a focused energy company while ensuring that its highly prospective gold and base metal assets secure the appropriate management and funding to achieve their potential.
ADX expects to retain a minimum of approximately 37% of the company, Riedel Resources Limited ('Riedel') upon listing and the raising of up to A$7 million. ADX shareholders will be given priority to secure shares in Riedel. The transition of business activities from gold and base metals to energy has progressed with the packaging of these gold and base metal assets into AuDAX Minerals Pty Ltd, a wholly owned subsidiary of ADX.
On 14 October 2010, Riedel entered into a Share Sale Agreement with ADX to acquire AuDAX Minerals Pty Ltd. The consideration upon completion will include Riedel allotting and issuing ADX with 25 million shares. Conditions precedent to the sale include Riedel obtaining written confirmation from the ASX that it has satisfied all conditions relating to its admission to the Official List.
ADX has been advised that Riedel has lodged its' prospectus with ASIC for its IPO. Riedels' prospectus is for an offer of up to 35 million shares at an issue price of A$0.20 each to raise up to A$7 million. As part of the Offer, Riedel will offer 10 million shares (of the 35 million shares) in priority to shareholders of ADX registered at the Record date on a first-come, first-served basis (Priority Offer).
The indicative timetable of the Riedel IPO is as follows:
- Lodgement of Prospectus with ASIC: 12 November 2010
- Exposure period ends: 5:00pm 19 November 2010
- Record Date: 17 November 2010
- Priority Offer and Public Offer Opening Date: 22 November 2010
- Priority Offer Closing Date: 8 December 2010
- Public Offer Closing Date: 10 December 2010
- Allotment of Shares: 20 December 2010
- Dispatch of holding statements: 22 December 2010
- Expected date for listing on ASX 23 December 2010
* The above dates are indicative only and may be varied by the Company without notice.
Further information regarding the Priority Offer will be sent to ADX shareholders when the exposure period ends on 19 November 2010.
Upon completion of this IPO our stated goals of placing these assets into a listed entity with a competent and focused management team, retaining a significant interest in the new company and attracting the necessary capital to develop further value for ADX shareholders will have been achieved.
About ADX Energy Limited:
The company's strategy is two pronged; grow the European and North African oil and gas business in order to expose shareholders to the lucrative European energy market and to promote it's existing Australian energy, gold and base metal portfolio to capitalise on the current high commodity price environment.
ADX was incorporated in 1987 in order to explore for gold and base metals in Western Australia. The company has recently diversified from its initial minerals focus to include oil and gas exploration. To that effect ADX farmed in PEL 182 into the South Australian portion of the Cooper Basin in 2005.
ADX appointed Wolfgang Zimmer, an oil and gas industry professional with over 27 years experience, as Managing Director in late 2007 to grow the company's oil and gas business. Subsequent director and staff appointments and the establishment of a European office have boosted the depth of oil and gas experience in the company and allowed the company to expand its oil and gas activities.
Currently ADX operates permits onshore and offshore Tunisia, offshore Italy and onshore Australia and holds an interest in a non operated block in onshore Romania.
ADX is also a participant and operator of a number of AMI's (Area/s of Mutual Interest) that enable it and its partners to efficiently act upon business opportunities.
Contact: Wolfgang ZimmerManaging DirectorTel: +43-676-358-1214Ian TchacosChairmanTel: +61-8-9226-2822http://www.adxenergy.com.au
ADX Energy Limited
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