TORONTO, Feb. 1, 2012 /CNW/ - Polo Resources (AIM and TSX: POL) today
announces that it has, on 30 January 2012, subscribed for a further
1,428,571 new shares in the African oil and gas exploration company
Signet Petroleum Ltd, ("Signet") for total consideration of US$5 million, by exercising part of the
option (the "Exercise") granted to the Company by Signet on 22 August 2011 (the "Call Option"). The proceeds of the Exercise will allow Signet to meet its short
term working capital requirements and to fund the acquisition of 3D
seismic in Tanzania and the purchase of seismic data in Burundi.
In consideration of the Exercise, Signet has agreed to an extension of
the Call Option period with respect to up to 2,857,143 new Signet
Shares (US$10 million at an exercise price of US$3.50 per share) from
31 January 2012 to 31 May 2012 (or earlier subject to agreed milestones
being achieved by Signet).
Following the issue of the new shares Signet will have 32,852,379 issued
ordinary shares ("Signet Shares"), of which Polo has as interest in 4,952,379 Signet Shares
representing 15.07 per cent of Signet's issued shares, and 12.2 per
cent of Signet's issued shares on a fully diluted basis (excluding
shares still the subject of the Call Option).
Executive Co-Chairman of Polo, Neil Herbert commented:
"Signet is making significant progress with its African oil and gas
projects and as a result I am very pleased to invest a further US$5
million and extend the option to invest up to a further $10 million at
the same value per share."
Background information on Signet Petroleum Ltd
Signet was incorporated and registered as a private limited company in
the British Virgin Islands on 18 June 2010. Since its incorporation
Signet has acquired interests in exploration rights for hydrocarbons in
four countries in Africa, namely, Tanzania, Burundi, Benin and Namibia.
Further information on Signet is contained in the Circular sent to
shareholders dated 15 September 2011.
By a resolution of shareholders at a general meeting of the Company on 6
October 2011, the Company's shareholders approved the exercise of the
Call Option, such exercise to be made at the Directors' discretion.
About the Company
Polo Resources is a natural resources investment company focused on
investing in undervalued companies and projects with strong
fundamentals and attractive growth prospects. For complete details on
Polo Resources: www.poloresources.com.
The AIM Market of London Stock Exchange plc does not accept
responsibility for the adequacy or accuracy of this release. No stock
exchange, securities commission or other regulatory authority has
approved or disapproved the information contained herein. All
statements, other than statements of historical fact, in this news
release are forward-looking statements that involve various risks and
uncertainties, including, without limitation, statements regarding
potential values, the future plans and objectives of Polo Resources
Limited. There can be no assurance that such statements will prove to
be accurate, achievable or recognizable in the near term.
Actual results and future events could differ materially from those
anticipated in such statements. These and all subsequent written and
oral forward-looking statements are based on the estimates and opinions
of management on the dates they are made and are expressly qualified in
their entirety by this notice. Polo Resources Limited assumes no
obligation to update forward-looking statements should circumstances or
management's estimates or opinions change.
SOURCE Polo Resources Limited
For further information:
| Polo Resources Limited || + 27 82 404 36 37 |
| Ian Burns, Finance Director || |
| || |
| Evolution Securities || + 44 (0)20 7597 5970 |
| Neil Elliot, Chris Sim, George Price || |
| || |
| Liberum Capital || +44 (0) 20 3100 2228 |
| Chris Bowman, Tim Graham || |
| || |
| Blythe Weigh Communications || +44 (0) 207 138 3204 |
| Tim Blythe, Matthew Neal || |
| || |
| Toronto || +1 416 367 6229 |
| Borden Ladner Gervais LLP || |
| Jeffery Barnes, Terence Lui |