Wildcat Petroleum shares suspended amid potential Sudan gold acquisition

LONDON - Wildcat Petroleum Plc (LSE:WCAT) has been suspended from trading on the London Stock Exchange as of Monday following the announcement of a potential acquisition that would shift the company’s focus from petroleum to gold mining in Sudan.

The oil exploration company signed a Memorandum of Understanding to acquire Wildcat Gold & Mining Trading & Multi Activities Company Ltd (WGMT), a company with no current assets but in "advanced discussions" to develop two gold licenses in Sudan, according to a company press release.

The proposed acquisition is expected to cost approximately £500,000, though final terms are still subject to legal and financial due diligence. WGMT is wholly owned by Dr. Omar Badawi Abu-elbashar, who serves as a senior consultant to Wildcat Petroleum, and his family.

The gold licenses under negotiation include the Nasb El Hussan prospect in the Nile State, covering an area of 10,003 square kilometers, and a 300 square kilometer area in the Red Sea Region of Northeastern Sudan. Both regions are described as "gold rich areas" in the company statement.

If completed, the acquisition would constitute an Initial Transaction under UK Listing Rules, requiring Wildcat to apply for admission to the equity shares (commercial companies) listing category of the Official List.

The Financial Conduct Authority suspended Wildcat’s listing on the equity shares (shell companies) category of the Official List at 7:30 a.m. Monday. The suspension will remain in effect pending either the publication of a prospectus with further information on the acquisition or an announcement that the deal is not proceeding.

Wildcat also plans to commence a "substantial fund raising" with institutional and strategic investors in conjunction with the acquisition.

The company noted that the acquisition remains subject to formal terms being agreed upon and completion of due diligence, with no certainty that the transaction will proceed.

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