Sage to raise $260m for Timis businesses9-February-10 by Rebecca...

Sage to raise $260m for Timis businesses
9-February-10 by Rebecca Lawson

Two Tony Sage-led companies plan to raise up to $260 million as a condition of deals to acquire businesses associated with controversial businessman Frank Timis.

African Petroleum Corporation, a Cayman Islands incorporated company, has gained a backdoor entry to the Australian Securities Exchange, after it today struck a deal with Leederville-based Global Iron.

Global Iron said the share sale agreement was valued at $500 million through the issue of 906.25 million shares at 55 cents each.

African Petroleum has rights to two highly prospective oil and gas exploration blocks off the coast of Liberia, which have the potential to hold between 1,875 million barrels to 3,043 million barrels. The acquisition is conditional on shareholder approval and the completion of a capital raising of at least $130 million and up to $230 million.

On completion, Mr Timis will be appointed as executive chairman, with current executive chairman Mr Sage to be his deputy. Global Iron will be renamed to African Petroleum on completion.

Meantime, International Petroleum, formerly International Goldfields, today lodged a prospectus to raise up to $30 million. The capital raising is being promoted largely to European and North American institutions, with 100 million shares on offer at 30 cents each.

Funds will be used for an exploration program of oil fields in Kazakhstan, which it acquired as part of an acquisition of with the Mr Timis-controlled Eastern Petroleum Corporation.
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http://www.wabusinessnews.com.au/en-story/1/78404/Sage-to-raise-260m-for-Timis-businesses