GrowMax Resources Corp. has announced it has accepted an offer from Energy Operations Argentina LLC for the sale of all of the issued and outstanding common shares of Energicon S.A. Energicon is the Company's wholly-owned Argentine subsidiary and the holder of various working interests in the Vaca Mahuida, Loma Ranqueles, Huacalera and Totoral concessions. Closing of the transaction is scheduled for 17 November 2016.
Cash consideration: US$5.0 million, of which US$1.0 million is payable by the Purchaser on Closing and US$1.0 million is payable six months after Closing. The remainder of US$3.0 million is payable in equal installments of US$1.0 million each, on the 12, 18 and 24 month following Closing. Should a hydrocarbon exploitation concession for Vaca Mahuida not be issued within six months of Closing, the cash consideration will be reduced to US$2.0 million and no further payments will be due from the Purchaser.
Abby Badwi, Executive Chairman of the Company, stated: "The sale of the remainder of GrowMax's oil and gas assets in Argentina provides the Company with the ability to focus its financial resources and personnel on growing the Company's mining business at Bayovar in Peru. This transaction will strengthen the Company's balance sheet by providing it with additional cash and will release the Company from future commitments in Argentina."
Read the article online at: https://www.worldfertilizer.com/project-news/14112016/growmax-to-sell-its-argentine-subsidiary/