Disposal of Argentine Subsidiary

RNS Number : 1210T

Obtala Resources Limited

01 December 2011

 



1 December 2011

Obtala Resources Limited

("Obtala" or the "Company")

(AIM: OBT)

Disposal of Argentine Subsidiary

The Board of Obtala Resources Limited, the natural resources investment and development company is pleased to announce that it has signed binding Heads of Agreement ("HoA") to dispose of its wholly owned subsidiary, Ilakon Ltd, which holds the Mina El Carmen oil and gas early stage exploration project in Argentina.

Highlights:

·     The binding Heads of Agreement to dispose of Ilakon Ltd for $750,000 has been signed

·     Disposal of non-core assets originally acquired as part of a bundle of assets in Argentina

Obtala has entered into binding HoA with Solo Oil plc ("Solo") to dispose of Ilakon Limited and its local Argentinean subsidiary, Spinell Sociedad, which holds 25 claims totalling 2,001 hectares over the Mina El Carmen project in southern Argentina.

Under the terms of the agreement both parties will work towards completion, subject to due diligence, in an efficient manner and by no later than 30 January 2012. Consideration will be satisfied by Solo issuing 81,128,205 fully paid up Solo shares to Obtala based on the closing mid market price of 0.6p per as at 23 November 2011.

Francesco Scolaro, Chairman of Obtala, commented "This disposal will benefit the Company by divesting non-core assets and remain with an investment opportunity in Solo, and further allows Obtala to focus on our main operations in Africa. It is an exciting time for Obtala and I look forward to the next few months with optimism."

Obtala Resources Francesco Scolaro - Chairman Simon Rollason - Managing Director www.obtalaresources.com	[phone]
Macquarie Capital (Europe) Limited (Nomad and Broker)
Steve Baldwin	[phone]
Nicholas Harland
Threadneedle Communications
Beth Harris Laurence Read	[phone]

 

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