Global Petroleum Enters Joint Venture for Western Australia Mineral Exploration

Global Petroleum Limited (LSE:GBP) has announced the successful execution of a pivotal Joint Venture (JV) agreement with Callum Baxter, marking a significant step in the company's strategy to expand its mineral resources portfolio.

Joint Venture Details

Global Petroleum has secured a major interest in a mineral exploration licence located in Western Australia through its partnership with Callum Baxter. This collaboration aims to advance exploration activities within the high-potential region, further diversifying Global’s portfolio and enhancing shareholder value.

The JV is centered around Exploration Licence EL08/3497, situated in a mineral-rich area of Western Australia. Under the terms of the agreement:

• Initial Acquisition: Global Petroleum will initially acquire a 70% interest in the licence for £200,000. Upon completing the asset sale, Global's stake in the licence will stand at 70%, while Callum Baxter will retain 30%.
• Option for Additional Interest: Global has a three-month option to purchase an additional 10% interest in the licence for £50,000, potentially increasing its total interest to 80%. Should this option be exercised, Callum Baxter's share would be reduced to 20%.
• Expenditure Commitment: Global Petroleum is committed to investing a minimum of £750,000 in exploration activities under the JV within 12 months following the completion date. The company will fund 100% of the JV expenditure up to the “Decision to Mine” stage, after which both parties will contribute according to their respective interests.
• Management and Royalties: Global Petroleum will assume the role of JV Manager, overseeing all exploration activities and providing technical reports to Callum Baxter. The agreement includes a royalty structure where Global will pay up to 5% on any future production from the licence, ensuring that both parties benefit from the project’s success.
• Governance: The management committee of the JV will consist of four members, with each party appointing two members. Global Petroleum will nominate the Chair of the committee, ensuring a balanced and effective governance structure.

Strategic Alignment

This joint venture aligns with Global Petroleum’s strategic objective to broaden its footprint within the mineral resources sector. By partnering with Callum Baxter, a well-respected geologist with significant experience, including his role in the Havieron Gold discovery, Global is well-positioned to leverage expert insights and maximize the potential of the Western Australian licence.

Callum Baxter’s expertise and track record in advancing high-grade gold discoveries add considerable value to the JV. His involvement in this project underscores the potential for significant exploration success, aligning with Global’s goal of exploring and developing high-potential mineral resources.

Capital Raising

To fund the acquisition and associated exploration activities, Global Petroleum will conduct a placing of new ordinary shares, raising £600,000 at an issue price of 0.065p each. Additionally, a retail offer to existing shareholders will support the capital raising effort, ensuring that the necessary funds are secured to advance the project.