PERTH (miningweekly.com) – ASX-listed FAR will postpone a shareholders meeting to vote on the sale of its share in the Rufisque Offshore, Sangomar Offshore and Sangomar Deep Offshore (RSSD) joint venture (JV), in Senegal, to partner Woodside, as it awaits a formal offtake offer from Remus Horizons PCC.
FAR in December last year received a non-binding indicative proposal from Remus, which flagged its intention to acquire all of the shares of FAR at 2.1c a share.
The Remus proposal was conditional on the Woodside sale not occurring.
Remus has also advised that subject to its board’s approval, the company could make a $50-million working capital loan facility available to FAR to enable the company to meet its cash calls under the RSSD project. FAR would be under no obligation to enter into the bridge loan.
FAR on Friday told its shareholders that Remus was currently finalising its funding arrangements in advance of making the proposed offer, with the only internal and regulatory approval required being that of the Remus board and a final review and confirmation of the documentation.
Foreign Investment Review Board approval would not be required under the Remus offer.
FAR told shareholders that by postponing the shareholder meeting from January 21 to February 18, would allow Remus sufficient time to make a formal offer, and for FAR to assess the merits of this offer while also considering the Woodside sales transaction on the basis of more detailed information.
Woodside in December last year exercised its rights over the RSSD JV to acquire FAR’s 13.67% interest in the Sangomar exploitation area and a 15% interest in the remaining RSSD evaluation area, by matching an earlier offer by ONGC Videsh Vankorneft, including a $45-million transaction payment, reimbursing FAR’s share of working capital, and entitlement to certain contingent payments capped at $55-million.
With the acquisition of FAR’s interest in the tenements, Woodside’s interest would increase to 82% for the Sangomar exploitation area and to 90% for the remaining RSSD evaluation area.
FAR said on Friday that while the company was awaiting a formal offer from Remus, it would continue to advance negotiations with Woodside in relation to sale of its interest in the RSSD JV.