Neos Resources PLC Silex Agreements (8084E)

TIDMNEOS

RNS Number : 8084E

Neos Resources PLC

15 May 2013

NEOS Resources plc ("NEOS" or the "Company")

Outsourcing of Finance Function and Geneva Office Space

NEOS today announces that it has entered into an agreement with Silex Management Limited ("Silex") for the provision of accounting and administrative services, including those functions previously performed by the Chief Financial Officer. The Company has further agreed to take office space at Rue Kleberg 6, CH-1201 Geneva, Switzerland from a Silex affiliate and will terminate its present rental at 22 Arlington Street, London SW1A 1RD.

Both of these agreements constitute related party transactions by virtue of the relationships between the Silex companies, which are subsidiaries of the Principle Capital Group ("Principle"), and Principle Capital Investments Limited, a substantial shareholder of NEOS that is managed by Principle. However, the Directors are pleased to report that net cost savings will be delivered in respect of both arrangements. Internal accounting and administrative support will be reduced from approximately GBP150k per annum to GBP75k per annum and subsequent to the termination of the London office rental agreement, accommodation costs will be reduced from approximately GBP50k per annum to approximately GBP36k per annum. The accounting and administrative services are subject to 3 months' notice expiring on any date after 30 September 2013 and the Geneva office accommodation runs until 28 February 2014.

In accordance with AIM Rule 13, the Independent Directors (being those other than Nicholas Myerson) consider, having consulted with finnCap Limited, NEOS' nominated adviser, that the terms of the transaction are fair and reasonable insofar as its shareholders are concerned.

Enquiries:

 
                             [phone] 
 NEOS Resources plc                     5626 
 Nicholas Myerson - Chief 
  Executive Officer 
 
                             [phone] 
 finnCap Ltd                            0500 
 Stuart Andrews 
  Christopher Raggett 
 
 
 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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