Magnum Gas & Power Ltd said on Friday it will be secondary listed on the Botswana Stock Exchange (BSE) Venture Capital Board tomorrow (December 1) as it looks to shore up its image to the community and create a mechanism to structure funding opportunities for exploration activities in the future.
The ASX quoted coal bed methane and petroleum explorer–with prospecting licences in Botswana and coal seam gas tenements in New South Wales, Australia will flout 850,375,705 common shares of no par value to cheer the local bourse which has not had a listing in recent past.
The company warned potential investors in a pre-listing statement posted on the BSE website, that any investment in the company’s securities should be considered speculative.
“Magnum shares will be held electronically on the Central Securities Depository (CSD), run by the Central Securities Depository Company of Botswana Ltd (CSDB). Investors will have their holdings maintained on an electronic register, however, investors who elect to have physical certificates can do so at their own cost,” the statement said.
The group through its wholly owned Botswana subsidiary Nata Energy (Pty) Ltd, has one hundred percent of the interest of the Botswana Coal Bed Methane Projects (Prospecting Licence’s 352/2008; 353/2008; 644/2009, 645/2009 and historically 45/2008).
The company said among other things the listing will facilitate direct trading and investment in Magnum shares by investors in Botswana and in the Southern African region and to enhance investor community awareness of the group thereby enlarging its investor base and increasing trading in its shares.
It will also provide a further funding mechanism through which the company may structure and fund opportunities in the exploration and development of its exploration and development activities in the country and elsewhere. This will be done in order to deliver enhanced liquidity and greater access to capital from both retail and institutional investors resident in Botswana and the global resource investment community.
Equally, the prelisting statement added that Magnum wants to be part of a growing list of international resources companies who have obtained a listing on the BSE and to promote Botswana as an attractive investment destination.
However, it revealed that no capital will be raised on the admission on the BSE and the Company will not be undertaking any capital raising in conjunction with the listing.
“The company has not and does not propose to enter into any arrangements whereby any option or preferential right of any kind is proposed to be given to any person to subscribe for securities of the company.”
Magnum Gas & Power Ltd is the product of the merger of Ormil Energy Ltd, an ASX listed coal seam gas explorer with tenements in New South Wales, Australia and Energy Botswana Ltd, a public unlisted entity with prospecting licences in Botswana.
According to the prelisting statement, the company owns 100 percent of Energy Botswana Pty Ltd (as a result of the aforesaid merger), which in turn holds 100 percent of two intermediary companies in Mauritius ÔÇô Gasco International Ltd and Nata Energy Mauritius Inc. Gasco International Ltd, in turn, holds 100 percent of Baobab Resources Ltd in Botswana whose main asset is Petroleum exploration licence 154/2012. Nata Energy Mauritius Inc holds 100 percent of Nata Energy (Pty) Ltd whose main assets are prospecting licences in the Central Project area as well as prospecting licences in the Northern Project area.
The Company will continue to be domiciled in Perth, Western Australia and its common shares will continue to trade on the ASX.