The AIM-quoted junior oiler, which owns 7.6mln shares in GEM, said in a statement on Friday that GEM was “well advanced in finalising a letter of intent with a unrelated third party” that, if completed, would see GEM shares re-listed.
“In the event that GEM is re-listed, that may allow market visibility on the value of Mosman's investment in GEM. Until then, it is not possible to quantify the current value of the shares ore recoverability of the US$100,000 loan due from GEM,” Mosman said in a statement.
In February 2018, Mosman's Chairman, John Barr, and two other parties were appointed as directors of GEM. As such, Mosman said that John Barr's time on GEM business had been billed to GEM and had also resulted in a reduction in time charges to Mosman.
Mosman added that GEM had held a shareholders meeting to consider a number of matters that are expected to lay the foundation to be able relaunch GEM as a revitalised company.
“The GEM board has recently reviewed in some detail several potential transactions in order that the revitalisation may proceed and thus a final decision be made on determining the appropriate business plan for GEM,” Mosman added.
Mosman said it was unable to estimate the likelihood of success at present as there remain several key conditions that require to be satisfied.
“Mosman's objective remains to recover its investment and loan,” Mosman added.