Columbus Copper (CCU.V) has announced it has signed an agreement whereby it will acquire the rights to the pending hydrocarbon block 8 in Albania. Columbus will do so through acquiring a BVI-incorporated company and its Albanian subsidiary by paying $90,000 and issuing 9.3 million new shares but only if the hydrocarbon license is issued by June 1st.
This seems to have been a strategic deal as Energulf Resources (ENG.V) has announced it intends to acquire all outstanding shares of Columbus Copper if (and only if) CCU indeed receives the Block 8 hydrocarbon license and the license for the Bulqiza chromite mine in Albania. Energulf will issue 0.4937 of its own shares per share of Columbus Copper which means the offer is made at a discount compared to the last closing price of the latter.
This is the end of a long and painful trajectory wherein Columbus Copper evolved from a near-term chromite producer in Albania to a copper exploration company in Turkey to be acquired by an oil-focused exploration company.
> Click here to read the press release
Disclosure: The author holds a long position in Columbus Copper. Please see our disclaimer for current positions.
