Shareholders to vote on ownership structures of exploration companies

SHAREHOLDERS of two John Teeling-chaired exploration companies – West African Diamonds (WAD) and Pan Andean – are set to vote on their future ownership structures in the second half of next month.

WAD, which is active in Guinea and Sierra Leone, is set to merge with local company Stellar Diamonds – which is a privately- owned subsidiary of AIM-listed entity, African Aura plc.

The prospectus, outlining the deal, will be sent to WAD’s shareholders (the Irish company is also listed on London’s AIM exchange), in the next fortnight, ahead of an extraordinary general meeting, for a formal vote on the deal, to be held in London next month. Post merger, the company is likely to re-list on AIM as Stellar Diamonds, with a new board of directors.

In an interim statement for WAD – covering the six months to the end of October – published last week, Mr Teeling said that the company had been too small to attract significant investor interest and it was essential for it to grow by consolidation. He added that the newly enlarged entity will continue to grow by consolidation “in what is a fragmented and undervalued industry.”

Meanwhile, the acquisition of oil and gas exploration company Pan Andean’s operations in Peru and Colombia by Canadian firm, Petrominerales, is to be voted on by shareholders no later than mid-to-late February.

Pan Andean, which also has its headquarters in Dublin, recently reported its first losses in ten years, mainly due to falling gas prices in the US.

The company will hold on to its interests in the US (the Gulf of Mexico) and Bolivia and will operate them privately, post-disposal, under the new name of Hydrocarbon Exploration, but could re-list at a later date.