Rose Petroleum PLC (LON:ROSE) said on Tuesday it was mulling a move into processing and manufacturing of gypsum in Cuba.
Unveiling plans, it also unveiled an £800,000 share placing to fund the due diligence and transactions fees associated with any deal.
The news comes less than a week after Rose effectively put a lid on its activities in Utah pending an upturn in activity in the oil sector.
Today chief executive Matthew Idiens said the company had been “reviewing numerous additional opportunities since the downturn”.
“The board believes that there are significant near term opportunities in the Cuban construction industry, which would complement the existing asset base and enable the company to seek to create value in this rapidly expanding market,” investors were told.
The opportunity was brought to Rose by Earth Source Investment.
Rose in its statement said there have been “direct discussions” with a Cuban government-owned company, which has “extensive gypsum resources and reserves for exploitation”.
Contact has also been made with the relevant ministries in Havana about a “potential transaction”, the firm added.
“At this stage, no terms or specific timing of any transaction have been agreed,” Rose went on.
The founders of Earth Source and “other associated parties” have agreed to fund Rose’s due diligence and transaction fees related to the deal by subscribing for 500mln shares at 0.16p each.
This will give the new investors 16.4% of Rose.