Rose Petroleum sells Mexican mill operation

AIM-quoted natural resources business Rose Petroleum has completed the disposal of its mineral processing mill operation in San Dieguito de Arriba in Mexico.

The SDA mill and its associated assets, licences and agreements were sold to Magellan Gold Corporation for a total cash consideration of $1.5m, $1m of which was to be payable in cash.

The $500,000 balance was paid in the form of 14,200,834 restricted common stock in Magellan.

Under SEC regulations, the shares would not be freely tradeable for a period of twelve months after their issue.

Matthew Idiens, chief executive of Rose Petroleum, said, "I am delighted that we have now completed the disposal of the SDA Mill. I would like to thank Magellan for their commitment to this process and we wish them the very best of luck with their Mexican endeavours. In Rose's capacity as a significant shareholder in Magellan, we look forward to watching how their operations progress."

Moving ahead, he added "We now look forward to focusing our operational and strategic efforts on our oil and gas assets in the Paradox Basin, U.S.A and we expect to be in a position to update the market shortly on progress."

As of 1215 GMT, shares had jumped 10.00% to 4.12p.