Range Resources Provides Update On Merger Plans With International Petroleum
Range Resources (ASX:RRS) has confirmed discussions are continuing with International Petroleum (IP) for a merger between the two companies as announced in April.
In April, Range had received commitments to a A$20 million placement to major funds and institutions and agreed to provide US$15 million to IP by way of a secured loan over its Russian assets.
To date, it has advanced US$8 million to IP.
IP has flagged it is considering other plans to raise funds in order to satisfy its liabilities.
Range said in a statement it will consider its position and any implications for the proposed merger should International Petroleum secure funds from alternative sources.
As well it will continue to update the market wtih the status of discussions and due diligence as appropriate.
In April, Range proposed a merger with International Petroleum on a ratio of three Range ordinary shares for every two International Petroleum ordinary shares (3:2 basis) subject to various conditions, including final due diligence and regulatory approvals.
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