Irish resource company Finavera Gas is to be listed on the Toronto Stock Exchange (TSX) Venture Exchange, following the reverse takeover of a listed cash shell, GTO Resources.
After the transaction the company is expected to be valued at approximately 40 million Canadian dollars (€27.9 million).
Shareholders in Finavera, which is developing the Lough Allen Basin gas reservoir on the Border between the Republic and Northern Ireland, are to receive 41.4 million shares from GTO at a deemed price of $0.75 per share.
At the close of the transaction, which it is hoped will be approved by the end of January 2007, the two companies will undertake a private placement to raise C$3.6 million. GTO will change its name to Finavera.
The funds raised will be used on technical studies at the Lough Allen field, in preparation for the drilling of test wells.
"Our listing on the TSX-V will provide Finavera Gas with the ability to source substantial financing to develop our exciting Lough Allen basin natural gas project," said Finavera chief executive Damien Reynolds.
The latest filed accounts for Finavera, for the year to end December 2004, show directors Jason Bak, from Blackrock, Co Dublin, and Mr Reynolds, from Queensland, Australia, each had a 23.6 per cent shareholding.
Shareholder Mollie Massie had a 19.6 per cent shareholding while Tycho Geoscience Ireland Ltd had a 6.5 per cent shareholding. The company was established in September 2003 .
