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Mosman Oil & Gas hopes GEM International will sign key letter of intent this quarter

GEM has been in talks to complete a transformational acquisition for a while now, and Mosman is hopeful that it can sign a letter of intent within the next six weeks or so

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Mosman has previously invested in and loaned money to GEM

Mosman Oil And Gas Limited (LON:MSMN) is hopeful that GEM International Resources will soon take a big step forward as it works to complete a long-awaited acquisition which would leave it “relisted and revitalised”.

AIM-quoted Mosman has a stake in GEM, which has been in advanced talks over a potential acquisition for several months now, but a formal letter of intent (LOI) is yet to be signed.

READ: Mosman increases stake in Challenger project

There have been a “number of complicating factors” associated with the deal, which has pushed back the timeline.

“The timing remains uncertain, however, the board are working towards a conclusion in order that the LOI may be signed this quarter,” read a Mosman statement on Tuesday.

It is understood that “several key conditions” are still required to be satisfied before any LOI is signed, and whilst these remain outstanding, “there is no clear timeline or guarantee of a conclusion”.

Mosman chairman and GEM director John W Barr added: “GEM continues to work through and gradually resolve issues, that once completed should see a revitalisation, and enable Mosman to recover value associated with its original investment in and the subsequent loan to GEM.

“The board of Mosman monitors this very closely and further announcements will be made when public information is available.”

Mosman shares were down 4.8% to 0.26p in early-afternoon trading on Tuesday.

Quick facts: Mosman Oil And Gas Ltd

Price: 0.22 GBX

AIM:MSMN
Market: AIM
Market Cap: £1.95 m
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