Written by 9:45 pm Calima Energy, Eclipse Metals, Featured Business News, Mining, Top Stories

Calima Energy Secures A$83.3 Million in Landmark Cash Sale of Blackspur Oil Corp

Calima-Energy1
Sharing is caring


Calima Energy Limited (ASX: CE1 / OTC: CLMEF or the Company) has entered into a binding definitive agreement to sell 100% of its wholly-owned Canadian subsidiary, Blackspur Oil Corp., to Astara Energy Corp. for a cash consideration of approximately A$83.3 million.

The Board of Directors recommends the sale, citing the significant disparity between the market capitalisation of the Company and the inherent value of Blackspur. The sale is expected to close by March 30th, 2024.

Shareholders can vote on the sale at an Extraordinary General Meeting on February 15th, 2024.

Fig.1 Indicative Timetable

Mr. Glenn Whiddon, Chairman of Calima, said,

“For some time, the share price of Calima has not accurately reflected the value of Calima’s oil and gas assets vis a vis our Canadian peers. The Blackspur Sale presents an excellent opportunity for Calima shareholders to benefit from this differential. The Board’s objective is to return the maximum amount of these proceeds to shareholders. I wish to thank all stakeholders for their support over the past few years, and importantly, the management team and field staff of Calima for their focus and dedication to the Company’s assets.”

Mr Glenn Whiddon, the Chairman of Calima Energy Limited, is experienced in equity capital markets, banking, and corporate advisory, primarily focusing on the natural resources sector. Mr Glenn Whiddon has been in charge of different leadership and management positions in the business world. Mr Glenn Whiddon is a Director for multiple publicly traded Australian and international companies operating in the resources sector.

Under his guidance, Calima Energy Limited has seen substantial growth in the energy sector.

Key Highlights

  • The cash sale, subject to customary adjustments for net debt, amounts to C$75 million (A$83.3 million). The post-sale net cash backing is estimated to be around 13 – 13.5 cents (A$) per share after completion adjustments
  • The completion of the transaction is subject to shareholder approval and approval under the Canadian Competition Act. The Company aims to distribute at least 85% of the sale proceeds to CE1 shareholders post-completion
  • Following the sale, Calima Energy Limited plans to continue as a listed Company, focusing on production from the Paradise Well in British Columbia. The company will also explore potential complementary opportunities
  • Calima’s objective is to return a significant portion of the funds from the Blackspur Sale to its shareholders in a tax effect. Shareholders are set to vote on the sale at an Extraordinary General Meeting on February 15, 2024

The Blackspur Sale is expected to close approximately 10 days after shareholder approval, with a March 30th, 2024 deadline. Astara has provided a C$5 million escrow deposit to secure its obligations.

Moving Forward

Calima Energy Limited plans to retain its Paradise Well asset in British Columbia, generating approximately A$350,000 in free cash flow annually. The balance of the proceeds from the Blackspur Sale is intended for future exploration programs and operational costs. The Company also owns A$4.1 million in cash remaining with the Calima and an A$400,000 bond with BCOGC.

If the shareholders approve the sale and the transaction is completed, ASX will likely suspend the company’s securities from official quotation on July 2, 2024.

Investor’s Outlook and Financials

  • Calima Energy’s sale of Blackspur Oil Corp. to Astara Energy Corp. marks a strategic move to unlock shareholder value and focus on its core assets
  • Calima Energy’s share price stands at AUD 0.10 per share as of January 5th, 2024, with a 52-week range movement of AUD 0.061 – 0.150 per share
  • The Company’s market capitalisation is AUD 62.5 million as of January 5th, 2024, with 625.7 million shares in issue

About Calima Energy

Calima Energy Limited (ASX: CE1 / OTCQB: CLMEF) is a Canadian Energy company that produces and explores oil and gas. Headquartered in Perth, Australia, the majority of the Company’s operations are centred in the southern and Central regions of Alberta.

Take a look at the official website for the latest news and updates.

Disclaimer

The Content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations, and video (Content), is a service of COLITCO LLP and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is not a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Colitco LLP is neither licensed nor qualified to provide investment advice through this platform. Users should inquire about any investments, and Colitco LLP strongly suggests that users seek advice from a financial adviser, stockbroker, or other professional (including taxation and legal advice) as necessary. Colitco, at this moment, disclaims any liabilities to any user for any direct, indirect, implied, punitive, special, incidental, or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Colitco LLP. Some images/music used on this website are copyrighted to their respective owner(s). Colitco LLP does not claim ownership of any pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions, or are believed to be in the public domain. We have used reasonable efforts to accredit the head wherever it was indicated as or found to be necessary.

Visited 59 times, 1 visit(s) today

Sharing is caring
Close Search Window
Close