Artumas Group, Inc. ('Artumas' or the 'Company') confirmed today that it has entered exclusive and confidential negotiations with Wentworth Resources Limited and it is expecting that a business combination of the two companies will conclude no later than June 1, 2010.
Wentworth is a newly founded company led by individuals with proven world scale gas-to-liquids project development and operatorship experience and significant cash reserves. Wentworth will in connection with the business combination complete a share capital increase amounting to USD 22 million in gross proceeds.
It is envisaged that the business combination will provide Artumas with USD 20 million in cash. The shareholders of Wenthworth will receive shares constituting approximately 58.5% of the combined business. The material increase in the Company's cash reserves resulting from the proposed business combination is expected to be sufficient to meet the Company's operating and capital requirements for the next two years.
The transaction values Artumas at approximately NOK 3.25 per share.
President and CEO Cameron Barton said 'we believe that the proposed transaction will provide Artumas with both the financial and human capital necessary to make significant progress toward its downstream gas commercialization ambitions in Tanzania such that the inherent value of the company's underlying assets can now be recognised.'