Australia's oil and gas producer Empire Oil and Gas NL received notification Tuesday from ERM Power Ltd. that the latter has sold its 18.72 percent shareholding in Empire to Mineral Resources Ltd. (MRL) at $0.33 (AUD 0.45) per share.
MRL, a mining infrastructure services provider, is now a cornerstone shareholder of Empire, holding a total stake of 19.36 percent. The transaction included 1,426,359 Empire options held by ERM which have an exercise price of $0.66 (AUD 0.90) per share and expire in April 2018.
The strategic investment in Empire will support the development of MRL’s liquefied natural gas (LNG) power strategy and provides it with the opportunity to work with Empire in providing direct access to a natural gas source in Western Australia. MRL’s first installation of its LNG technology will be at the Mt. Marion lithium project, due to commence full operations in the second half of this year.
“MRL is pleased to be associated with Empire and looks forward to supporting the growth of its oil and gas business in conjunction with developing the power supply element of MRL’s mining services business,” Chris Ellison, managing director of MRL said in the press release.
“Empire looks forward to the ongoing support of MRL in unlocking the future potential of the Perth Basin. ERM Power has played an important part in establishing Empire as a significant Perth Basin producer with its own infrastructure, and has been a supportive cornerstone shareholder for more than two years,” Empire CEO Ken Aitken added.
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