Rose Petroleum PLC (LON:ROSE) has announced that a binding stock purchase agreement (SPA) has now been signed with Magellan Gold Corporation in relation to the previously proposed deal for Rose’s metal processing operation in Mexico.
The deal sees Magellan will pay a total consideration of US$1.5mln for the San Dieguito de Arriba mill, with US$1mln coming in cash and US$500,000 in restricted common stock.
It is expected currently that the deal will be completed before the end of October.
Mathew Idiens, Rose Petroleum chief executive, in a statement, said: “The signing of the SPA is a major step completed in respect of the SDA Mill disposal, and with the support of Shareholders at the convened general meeting, we hope to be able to complete the transaction in the coming weeks in order to focus the company's operations on the 3D seismic shoot in the Paradox basin in Utah.
READ: Rose Petroleum seeking approval for Mexico mill disposal, potential equity fund-raising, share consolidation
“We look forward to receiving the balance of funds from Magellan for the disposal at completion, which is expected to dovetail nicely into the timing of the Paradox shoot."
At the end of August, Rose revealed that the design for an upcoming seismic survey in the Paradox basin in Utah, has now been completed and told investors that operations would start within a matter of days.