Sydney-based royalty company Royalco Resources Ltd (ASX: RCO) says that parties interested in acquiring whole or part of its Bass Strait petroleum production interest have been provided with data.
Independent company director Geoff Barker, who is handling negotiations, said the data room for parties for the next stage of negotiations on the “basis of acceptable expressions of interest” will open on April 30.
A binding offer from them would be required by May 21.
Royalco holds a 1% interest in the Weeks Royalty on Bass Strait oil and gas production, which had been acquired by the company about three years ago when it was a Melbourne-based operation.
Since then there have been major board changes and the company moved to Sydney after Fitzroy River Corporation Ltd (ASX: FZR) became a major shareholder and a decision was made to review all the company assets, and to consider selling the Weeks Royalty equity.
When Royalco was Melbourne-based and had Peter Topham as its key executive, the company had a significant royalty cash flow from the Globe-Progress open cut mine at Reefton on New Zealand’s South Island. However, that royalty flow ceased well before OceanaGold Corporation (TSX & ASX: OGC) decided to mothball that mine.
One other NZ gold asset that Royalco retains a royalty entitlement to is Sams Creek in which OceanaGold retains a 20% stake but this project near Takaka is subject of a sale to Perth company Condamine Resources which is planning an IPO.
To date, the 80% project owner MOD Resources Ltd (ASX: MOD) has not been able to show Condamine is making progress with its planned float, so perhaps Royalco under its Sydney management may want to consider selling that royalty right rather than waiting for years for Sams Creek to be developed.
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