Armour Energy (ASX:AJQ) enters share sale agreement with Auburn Resources

• Armour Energy (AJQ) has executed a share sale agreement with Auburn Resources for the sale of all issued capital in Ripple Resources
• For the issue of 5.6 million fully-paid ordinary Auburn shares, Armour will transfer its 100 per cent interest in Ripple to Auburn
• Upon completion, Armour will hold roughly 12.5 per cent of Auburn’s issued shares
• This agreement will give Armour a stake in a company in the process of investigating a potential ASX listing
• Armour is up 2.63 per cent on the market and shares are trading at 3.9 cents

Armour Energy (AJQ) has executed a share sale agreement with Auburn Resources to sell all the issued capital in Ripple Resources.

For the issue of 5.6 million fully-paid ordinary Auburn shares, Armour will transfer its 100 per cent interest in Ripple to Auburn.

Upon completion, Armour will hold roughly 12.5 per cent of Auburn’s issued shares.

Ripple holds a number of mineral exploration licences in Queensland and the Northern Territory which are prospective for lead and zinc.

Additionally, Auburn holds a significant lead-zinc holdings in Northern Queensland and the Northern Territory.

Completion of the sale is subject to certain conditions with the primary one of Ripple being released from its obligations and liabilities.

Further, any held security interest must be released prior to completion.

This agreement will give Armour an investment in a company in the process of investigating a potential ASX listing.

“The execution of the sales agreement with Auburn further demonstrates Armour’s commitment to streamlining its asset portfolio and focusing on the core oil and gas assets in the Surat and Cooper basins,” CEO Brad Lingo said.

“Ripple has some great assets and Armour will be a keen observer of Auburn’s progression over the coming years,” he added.

Armour is up 2.63 per cent on the market and shares are trading at 3.9 cents at 1:10 pm AEDT.