Reabold Resources cuts a proposed deal with Gunvor
A non-binding heads of agreement with commodity trading firm Gunvor International has been entered into by Reabold Resources.
IGTV caught up with co-CEO Sachin Oza to discuss the proposal to better understand the agreement entered into for the liquefied natural gas to be produced from the Colle Santo gas field in Italy. Also the prepaid funding arrangement agreed of €30 million. The deal envisages that Gunvor will buy around 44,000 tonnes of LNG annually from LNEnergy Limited, a partner of Reabold, over a minimum period of five years. The discussion also focussed in on the difficulties of the London markets generally and AIM specifically, especially for small cap businesses like Reabold which is trading at a discount to cash.
(AI Video Summary)
Reabold Resources cuts a deal with Gunvor International
Reabold Resources, a London AIM-listed company, focuses on investing in gas projects with near-term production potential. Co-CEO Sachin Oza discusses their strategy of targeting low technical risk, high-quality gas resources to support energy security in Western Europe. Key projects include the UK's West Newton and Italy's Colasanto. A significant deal with Gunvor International for LNG offtake from Colasanto includes €30 million in prepay funding, essential for project development.
Challenges of AIM-listed companies
Despite substantial assets and innovative funding solutions, Reabold's market value seems unacknowledged, a common issue among AIM-listed companies affected by capital market confidence and political uncertainties. The discussion also touches on the broader challenges and potential vulnerabilities of AIM companies related to investor confidence and market valuation discrepancies.
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