Red Rock Resources plc has accepted an offer to exchange its shares in Elephant Oil Ltd (EOL) which holds hydrocarbon exploration licences onshore Benin.
Red Rock has a 4.68% holding in EOL at a current value of £137,500 and the swap will be for shares in Elephant Oil Corp (EOC).
The miner said it would receive one third of a share of common stock in the capital of EOC for each ordinary share it holds EOL resulting in the issue to Red Rock of 362,318 shares in EOC.
Red Rock added that EOC was a newly incorporated entity in the US which had stated it intended to raise pre-IPO capital of $2 million followed by a larger offering and admission to trading on NASDAQ in September 2021.
EOL acquired the Bénin Onshore Block B in the Dahomey Embayment (Coastal Basin) covering 4,590 sq km (1.1 million acres) in 2013.