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XSTATE RESOURCES LIMITED — Capital/Financing Update 2017
Apr 18, 2017
66107_rns_2017-04-18_adedc063-5f4c-4f14-9dae-c08fad734434.pdf
Capital/Financing Update
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ABN 96 009 217 154
Electronic lodgement
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19 April 2017
ASX Limited
Subscription Agreements and LA Basin Acquisition Update
Xstate Resources Limited (ASX: XST) (“Xstate” or “the Company”) provides the following update in relation to the Subscripion Agreements and the Los Angeles Basin assets acquisition.
Xstate advises that as a result of the non-payment of subscription funds by investors who have signed binding, unconditional subscription agreements, the vendor of the Los Angeles assets being sold to Xstate in California, USA, has terminated the existing Purchase and Sale Agreement.
The Board of Xstate regrets that the non-payment of unconditionally committed funds has resulted in the Company’s inability to complete a strategic and value accretive transaction as well as the loss of a non refundable deposit.
The board of Xstate will now immediately commence legal proceedings against the investors seeking damages resulting from the non-performance of their funding obligations to Xstate.
In this regard the Company has already appointed legal counsel in Australia and Singapore to expedite this matter.
For and on behalf of the Board of Xstate Resources Limited
For further details please contact:
Cosimo Damiano
Managing Director Xstate Resources Limited Tel Office: +61 8 9423 3200 Email: [email protected]
About Xstate Resources Limited
Xstate Resources (ASX Code: XST) is an ASX listed company focused on the oil and gas sector. The Company has existing gas exploration assets located in the Sacramento Basin, California and associated gas production.
Level 2, 55 Carrington Street, Nedlands WA 6009 | Tel + 61 8 9423 3200 | Fax +61 8 6444 7408 www.xstate.com.au