TXO has a US$1.5m convertible loan note in Empire which gives the Company a call option to acquire a 19.9% equity interest in Empire (on a fully diluted basis) or be paid back in full.
Subject to shareholder approval of the amendment to TXO's investing policy at the forthcoming AGM, TXO will be awarded by Empire, in recognition of previous support and introductions, 10 per cent carried interest in the ordinary share capital in the Special Purpose Vehicle ("SPV").
Two Exploration Licence Applications over the Mt Lloyd Area have been submitted by Empire to the Director of Mines at Mineral Resources Tasmania. Both are Category 2 Minerals including Coal and Coal Bed Methane. The first covers approximately 250km2 of land in the Northern Mt Lloyd area of Southern Tasmania. The second covers approximately 250km2 of land in the Southern Mt Lloyd area of Southern Tasmania.
Tim Baldwin, Chairman of TXO commented "We are excited that TXO shareholders will be able to directly benefit from any upside from Empire's proposed drilling and further seismic surveys to prove up possible resources and reserves to a Joint Ore Reserves Committee (JORC) code reporting standard on the license areas."
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