After many months of negotiation, Black Lion has acquired four leases in the Dallas area of Texas with proved reserves to Black Lion valued as US $3.15 – US $5.4 million by an independent engineering firm. The terms for the acquisition were $50,000 in cash, 1,250,000 ordinary shares of Black Lion Resources plc and 400,000 redeemable Convertible Preference (“CP”) shares of US $1 each.
Black Lion now intends to develop the acquired leases and a Placing Memorandum will be circulated mid May 2013 to raise ca. £750,000 at 20p per share. It is the intention of the Directors’ to admit the Company to trading on an approved Exchange post fundraising, such as GXG Markets (www.gxgmarkets.co.uk) or similar.
Existing shareholders will be given priority in this fund raise
A General Meeting of the Company has been called for 23rd May 2013, to create the Convertible Preference Shares and to give the Directors authority to allot them in accordance with the sale and purchase agreement. Irrevocable agreements to vote in favour of the resolutions have been received from shareholders who hold 7,250,000 Ordinary shares constituting 68.01% of the current issued share capital.
The Notice convening this meeting and the proposed new Articles of Association are available here: