Under the $US30 million ($A36 million) farm-out, US company PetroHunter will earn up to about 67% interest in all of Lakes’ exploration permits.
Melbourne-based Lakes on Friday said PetroHunter, or its subsidiary company Sweetpea, will initially farm-in to 33.3% of Lakes’ permits by spending $7 million in its permits. It will also subscribe for $3 million in new shares in Lakes at 1.5c.
PetroHunter will also have the right to increase its position in Lakes’ permits with two further 16.67% farm-in tranches of $10 million each, exercisable within 12 months and 24 months, respectively.
“The agreement provides that PetroHunter has the right to participate in the same proportion in any permits which are non-contiguous to existing permits acquired by Lakes within two years, and any contiguous permits acquired by Lakes moving forward, and PetroHunter has a first right of refusal in other permits acquired by Lakes within five years,” Lakes said.
Lakes said PetroHunter will assume Lakes’ position as operator of the permits “where relevant”, and will be invited to nominate a representative to the Lakes board.
