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DGR GLOBAL LIMITED — Capital/Financing Update 2015
Sep 10, 2015
64771_rns_2015-09-10_a8d0ee2a-ec9c-4a75-9d5a-826539294253.pdf
Capital/Financing Update
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DGR Global Limited
11 September 2015
DGR Business Update
The Directors of DGR Global Limited (ASX: DGR) wish to provide shareholders and investors with an update of the latest activity and developments within the wider DGR Global portfolio.
Armour Energy Ltd | ASX: AJQ – DGR 25% ‐ 75m Shares | www.armourenergy.com.au
On 9 September 2015, the Directors of Armour released a statement that, having reviewed the terms of the takeover offer received by Westside Corporation Ltd, the Board of Armour unanimously recommends that Armour shareholders REJECT the opportunistic and inadequate offer as it significantly undervalues Armour both in terms of its existing assets, and the potential value that Armour expects to deliver to its shareholders in the near future.
On 2 September 2015, Armour announced that it had entered into Sale and Purchase Agreements to acquire the oil and gas interests of Origin Energy Limited at Roma in the Surat Basin, Queensland for $13m ( Roma Shelf Acquisition ). In terms of funding for the Roma Shelf Acquisition, Armour has today announced that it currently proposes to utilise its existing cash resources together with debt financing.
Prior to Armour’s execution of the agreements for the Roma Shelf Acquisition, DGR Global had provided a funding proposal to Armour which provided for a debt financing package of $15 million on commercial terms ( DGR Proposal ).
Armour has announced that it is also in advanced discussions with other third party financiers both as an adjunct to, and an alternative to, the DGR Proposal.
Whilst the DGR Proposal is capable of acceptance by Armour, the term sheet has not been signed (nor any definitive documents finalized or executed).
DGR Global is advised that Armour continues to engage with a variety of parties with respect to funding alternatives to the DGR Proposal. DGR Global will continue to update the market as required in relation to this initiative.
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On behalf of the Board Karl Schlobohm Company Secretary
DGR Global Limited ACN 052 354 837
street: Level 27, 111 Eagle Street post: GPO Box 5261 Brisbane QLD 4001 p +61 7 3303 0680 f +61 7 3303 0681 e [email protected] w www.dgrglobal.com.au
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Electronic copies and more information are available on the Company website: www.dgrglobal.com.au
Email: [email protected]
For further information contact:
Mr Nicholas Mather Managing Director, DGR Global Ltd Ph: 07 3303 0680
Karl Schlobohm Company Secretary, DGR Global Ltd Ph: 07 3303 0680
About DGR Global Limited
DGR Global’s business is the creation of resource exploration development and mining companies.
The business uses the skills of a core team of talented geoscientists to identify resource projects capable of yielding world class discoveries of attractive commodities.
This is achieved through:
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The identification of commodities with a favorable 20 year price outlook.
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Geological terranes with:
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A demonstrated strong endowment for that commodity;
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An under‐explored history;
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Opportunity for the application of recently developed exploration techniques;
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Jurisdictions with improving socio‐economic and regulatory frameworks;
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Extensive available tenures.
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DGR provides initial seed funding and management support to secure these assets in subsidiaries and develop these assets to more advanced funding stages. The Company has a pipeline of projects in daughter companies at various stages of emergence, and has recently crystalised a significant return through the sale of its 15% holding in Orbis Gold for $26million. Further development of its holdings in AIM listed SolGold and IronRidge Resources and ASX Listed AusTin Mining, Navaho Gold and Armour Energy and unlisted Archer Resources, are expected over the coming years.
The Company is currently involved in the search for safe high grade, high‐yielding production operations in which to invest the bulk of its available cash resources.
DGR Global has commenced an intended program of judicious dividend payments to its shareholders. The future of the dividend program will depend on circumstances from time to time.
The previous resource exploration and funding activities of DGR’s key personnel underscore the opportunities provided by the DGR business model.
DGR Global Limited ACN 052 354 837
street: Level 27, 111 Eagle Street post: GPO Box 5261 Brisbane QLD 4001 p +61 7 3303 0680 f +61 7 3303 0681 e [email protected] w www.dgrglobal.com.au