ADX Energy Limited (ASX:ADX) Update on Initial Public Offering of Gold and Base Metal Assets
Perth, Nov 15, 2010 AEST (ABN Newswire) - ADX Energy Limited (
ASX:ADX) (PINK:ADXRF) is pleased to announce the lodgment of a prospectus with ASIC for an Initial Public Offering ("IPO") incorporating ADX' gold and base metal assets. This IPO enables ADX to continue its stated transformation into a focused energy company while ensuring that its highly prospective gold and base metal assets secure the appropriate management and funding to achieve their potential.
ADX expects to retain a minimum of approximately 37% of the company, Riedel Resources Limited ('Riedel') upon listing and the raising of up to A$7 million. ADX shareholders will be given priority to secure shares in Riedel. The transition of business activities from gold and base metals to energy has progressed with the packaging of these gold and base metal assets into AuDAX Minerals Pty Ltd, a wholly owned subsidiary of ADX.
On 14 October 2010, Riedel entered into a Share Sale Agreement with ADX to acquire AuDAX Minerals Pty Ltd. The consideration upon completion will include Riedel allotting and issuing ADX with 25 million shares. Conditions precedent to the sale include Riedel obtaining written confirmation from the ASX that it has satisfied all conditions relating to its admission to the Official List.
ADX has been advised that Riedel has lodged its' prospectus with ASIC for its IPO. Riedels' prospectus is for an offer of up to 35 million shares at an issue price of A$0.20 each to raise up to A$7 million. As part of the Offer, Riedel will offer 10 million shares (of the 35 million shares) in priority to shareholders of ADX registered at the Record date on a first-come, first-served basis (Priority Offer).
The indicative timetable of the Riedel IPO is as follows:
- Lodgement of Prospectus with ASIC: 12 November 2010
- Exposure period ends: 5:00pm 19 November 2010
- Record Date: 17 November 2010
- Priority Offer and Public Offer Opening Date: 22 November 2010
- Priority Offer Closing Date: 8 December 2010
- Public Offer Closing Date: 10 December 2010
- Allotment of Shares: 20 December 2010
- Dispatch of holding statements: 22 December 2010
- Expected date for listing on ASX 23 December 2010
* The above dates are indicative only and may be varied by the Company without notice.
Further information regarding the Priority Offer will be sent to ADX shareholders when the exposure period ends on 19 November 2010.
Upon completion of this IPO our stated goals of placing these assets into a listed entity with a competent and focused management team, retaining a significant interest in the new company and attracting the necessary capital to develop further value for ADX shareholders will have been achieved.
About ADX Energy Limited
ADX Energy Limited's (
ASX:ADX) (OTCMKTS:ADXRF) is an Australian Stock Exchange (ASX) listed International Energy Explorer which is soon to become a Producer. The Company's Geographical focus is Onshore Europe and Offshore Mediterranean with a portfolio consisting of recently acquired Production as well as Appraisal, Development and Exploration Assets. ADX's interests are located in Romania, Italy, Tunisia and most recently Austria. The Company's immediate focus is on low cost, low risk, profitable resource commercialisation opportunities onshore and higher cost higher reward offshore projects in the longer term. The Company is headquartered in Perth, Western Australia with additional operating offices in Bucharest (Romania) and soon to be Vienna (Austria). The Company also has representative offices in Italy and Tunisia.
ADX Energy's vision is to establish a stable cash producing platform onshore Europe and develop a number of rapid resource to reserves opportunities as well as low risk exploration potential with access to infrastructure in favourable fiscal and operating environments.
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