Quarterly Activities Report
Perth, Oct 30, 2015 AEST (ABN Newswire) - As announced on 26th October Raya Group Ltd (
ASX:RYG) entered into a binding Heads of Agreement (HOA) with the key shareholders of Xped Holdings Ltd (Xped) to acquire all of the issued capital in Xped. Under the HOA, the remaining shareholders who hold 4.4% of Xped are expected to sign documentation by 3 November 2015, which will provide RYG with a right to then acquire 100%.
The Company is of the view that the acquisition of Xped will create a significant opportunity for both Raya Group and Xped stakeholders, enabling Xped to become a major force in the lucrative "INTERNET OF THINGS" (IoT) market.
Due Diligence period begins following the execution of the HOA and the market will be kept informed as the Company progresses this opportunity.
Purchase and Sale Agreement with Pryme Energy Ltd
On 1st July 2015 Pryme issued 100,000,000 fully paid ordinary shares and $250,000 AUD cash payment to Raya as part of Tranche 1 consideration under the Purchase and Sale Agreement of Raya's USA oil/gas assets.
The consideration payments of $350,000 for Tranche 2 and 3 combined, will become due to Raya at the success of the first 2 wells drilled in the Total Acreage on the basis they each are equal to or greater than 31 Mbo of oil and 200 MMcf of natural gas "gross" proved producing developed 1P certified reserves by Pinnacle Energy Services L.L.C.
During the quarter Raya acquired a further 35,014,214 Pryme listed shares (PYM) to bring the total holding to 135,014,214 listed shares.
On 12th October the Company sold its entire holding in Pryme Energy via on market trades and received funds totalling $667,000 after brokerage. The timing and disposal of the Pryme investment followed an opportunity to progress an acquisition opportunity with Xped Holdings.
Update on Current Projects
Sokoria Geothermal Project
The Company currently is awaiting approval from PLN on the Transmission Line Study tariff proposal for the Sokoria Geothermal Project with negotiations still ongoing.
During the quarter Raya and Bakrie met in Jakarta with a large power group from Europe to discuss potential involvement with the Sokoria Project. Whilst the discussions are still early with this party they hold all the capabilities to develop and fund the project from start to finish. They will continue to review Sokoria and other projects in the region and will advise their intentions when ready.
All other in-country works have been put on hold.
Australian Geothermal Projects
No other direct works were completed on any of the Australian tenements during the quarter, other than in respect of licence renewals and the like to ensure that all of these tenements remain in good standing.
Corporate
Share Registry
Raya changed its Share Registry provider to Automic Registry Services for shareholders on 20th July. The Automic proposal presented an ongoing saving to the company for this administration service and continues to add to recent cost reductions implemented.
Extraordinary General Meeting
On the 24th September an Extraordinary General Meeting ("EGM") was held to consider a number of resolutions to shareholders.
The Company is pleased to advise all resolutions were passed in favour.
Director Resignation
The Company advised on 22nd October that Daniel Lanskey has retired from the board.
2015 FY Financial Statements
The company recently engaged Pitcher Partners as independent auditor for the financial report of Raya Group Limited for the year ended 30 June 2015.
Raya will be holding its Annual General Meeting on 25th November to table the Financial Report before shareholders.
Mining Tenements held at the end of the Quarter:
Australia
Penola Trough: Areas GEL 223 area in the south-east of South Australia. These tenements are 100% owned by the Raya Group.
Limestone Coast: Areas GEL 611 area in the south-east of South Australia. These tenements are all 100% owned by the Raya Group.
Indonesia
Sokoria Geothermal Project: a Joint Venture with PT Bakrie Power, for a 30 MW geothermal development on Flores Island, Indonesia, with Raya holding a 45% interest in the project.
Ngebel Geothermal Project: a Joint Venture with PT Bakrie Power, for a 165 MW geothermal development on East Java, Indonesia, with Raya earning into a 35% interest in the project.
Dairi Prima Geothermal Project: a Joint Venture with PT Bakrie Power, for a 25 MW geothermal development in Northern Sumatra, Indonesia, with Raya holding a 51% interest in the project.
USA
Nil
Mining Tenements disposed of during the Quarter:
2,300 net acres in Northern Oklahoma were sold to Pryme Energy Limited
Finance and Administration
Cash Holdings
At the end of the quarter, the Company's cash position stood at approximately $366,000
The company also received a further $667,000 cash payment on 15th October from sale of Pryme shares.
Equity Holdings
The company disposed of its equity investment in Pryme Energy (ASX:PYM) and currently does not hold any shares.
HSEC
During the quarter under review, there were no reportable incidents relating to health, safety or community related matters.
About XPED Ltd
XPED Ltd (ASX:XPE) is an Australian Internet of Things (“IoT”) technology business. Xped has developed revolutionary and patent-protected technology that allows any consumer, regardless of their technical capability, to connect, monitor and control devices and appliances found in our everyday environment. Xped provides technology solutions for Smart Home, Smart Building, and Healthcare.
At Xped, we’re Making Technology Easy Again(TM)
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