Rose Petroleum PLC (LON:ROSE) has completed the sale of its processing mill in Mexico to Magellan Gold Corporation (OTCQB:MAGE).
Total consideration was US$1.5mln, of which US$1mln was in cash that has now been received, the company said in a statement on Friday.
WATCH: Rose Petroleum nearing completion of Mexico asset disposal
The remaining US$500,000 will be met through shares in Magellan and will represent a 15% stake. Magellan has an option to buy the shares back.
Matthew Idiens, Rose’s chief executive, said: "I am delighted that we have now completed the disposal of the SDA Mill.
"We now look forward to focusing our operational and strategic efforts on our oil and gas assets in the Paradox Basin, USA."