Australian exploration company Strzelecki Metals has hopes of becoming a Mongolian-focused oil explorer once its reverse takeover of Wolf Petroleum is complete.
Its current projects include the Myszkow molybdenum-copper-tungsten deposit in southern Poland and a suite of mineral tenements in Western Australia. Strzelecki is methodically drilling the Myszkow resource to establish its full extent and accurately scope a mining operation at the site. The company is also looking to identify other projects in Central Europe for potential acquisition.
Strzelecki holds a 91.1% stake in Wolf, which is one of the largest holders of oil and gas exploration acreage in Mongolia. It is currently conducting work programs across blocks totalling 72,791sqkm but is yet to become an oil and gas producer.
The reverse takeover agreement outlines that Strzelecki shares will be consolidated on a 10 for one basis. Wolf Petroleum shareholders will then be given 2.5 Strzelecki shares for each Wolf Petroleum share. The merged entity will hold consolidated funds of $9.7 million in cash and will maintain its exploration interests in Poland and Australia.
To assist with the takeover of Wolf, Strzelecki has sold its subsidiary Urex to Tortuga Advisors for a nominal sum. The sale will include the transfer of Strzelecki’s rights, title and stake in the West Musgrave joint venture tenements in Western Australia. The package includes eight exploration licences, for which Urex will issue Strzelecki 11.25 million shares.