24 May 2013 14:18
24 May 2013
Mercom Oil Sands Plc (AIM: MMO)
("Mercom" or "the Company")
Result of General Meeting
Speaking to shareholders at today's General Meeting, Mercom Non-executive Chairman Patrick Cross said:
·; The Company's strategy is to create shareholder value through the investment of its cash assets. The Board of Mercom believes this will generate better returns while bank deposit rates remain low and its farm-in agreement with Nordic Petroleum is being resolved. The Company had cash resources of approximately £2.0m as at 31 March 2013.
·; Investments will be focused on investment opportunities in good quality mid-tier company offering upside potential but which have significant track records. The Company will also explore speculative investments. The directors' broad range of experience will be utilised to invest in sectors which include but are not limited to natural resources and energy, with a focus on oil and gas.
·; Investments may be made in quoted shares, units in open ended investment companies and exchange traded funds, commodities, future contracts, or any type of financial instrument. Mercom intends to buy shares and/or financial instruments which offer scope for material returns to shareholders within five years.
·; It is not intended that investments will be for stakes of greater than 20 per cent. in the investee company or fund. The threshold of 20 per cent. may be exceeded provided there is unanimous Board approval accompanied by an independent valuation prepared by a professional or organisation in support of the acquisition price.
·; There will be no geographic, company specific concentrations restrictions or limits on the number of investments made. The Board will take into account funds available for investment when assessing the amount of any investment and the spread of investments. There will be no restriction on the maximum investment limit.
·; Investment will be long only. It is proposed that investments will be ungeared.
·; A quarterly update on its NAV will be published by the Company.
All resolutions proposed at the General Meeting held earlier today, as set out in the notice dated 8 May 2013, were all duly approved by shareholders.
Enquiries:
Libertas Capital Corporate Finance Limited | |
Tim Cofman | +44 (0) 20 7569 9650 |
Cardew Group | |
Shan Shan Willenbrock/Alexandra Stoneham | +44 (0) 20 7930 0777 |