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TAG to Transfer Stake in New Zealand Power Generator to Coronado Resources
VANCOUVER, May 15, 2013
VANCOUVER, May 15, 2013 /PRNewswire/ – TAG Oil Ltd. (TSX: TAO; OTCQX: TAOIF), reports that it has agreed to sell its 90%
stake in Opunake Hydro Limited (“OHL“), an established electricity generator and supplier in New Zealand, to
Coronado Resources Ltd. (TSX-V: CRD; OTCQX: CRDAF) in exchange for
common shares of Coronado valued at approximately CDN$5,000,000. The
common shares of Coronado being issued to TAG Oil and the vendor of the
remaing 10% interest represents full consideration paid by Coronado to
acquire 100% of the issued and outstanding shares of OHL.
OHL is an active power generation company based in New Zealand, and is
poised to rapidly expand its generation capabilities. Upon completion
of this transaction, OHL will have working capital of approximately
CDN$8 million allowing the company to acquire additional gas fired
electricity generation equipment, while securing natural gas supply
through TAG. This will enable both TAG and OHL to benefit from
increased generation of electricity for sale into thriving retail,
industrial and commercial markets.
The transaction is being completed pursuant to the terms of a definitive
share purchase agreement dated May 13, 2013 between TAG Oil, Coronado
and the vendor of the remaining 10% interest in OHL. Under the terms of
the share purchase agreement, TAG will receive 13,015,410 common shares
of Coronado valued at CDN$0.39 per share. The Coronado share price is
based on the volume weighted average closing price of Coronado’s common
shares on the TSX Venture Exchange (“TSX-V“) for the 20 consecutive trading days ending on May 10, 2013.
TAG currently holds 25,975,000 common shares, or 40.08%, of Coronado and
upon completion of the transaction, TAG will hold 38,990,410 common
shares, or 49.18%. The common shares will be held for investment
purposes and TAG may, depending on market and other conditions,
increase or decrease its beneficial ownership of common shares or other
securities of Coronado whether in the open market, by privately
negotiated agreement or otherwise.