Carmanah sells RI mining unit

Carmanah sells RI mining unit

CALGARY (Dow Jones): Carmanah Resources Ltd. said it has sold its GFB Resources (Langsa) Ltd. unit to Maple Oil NL for $2.15 million and 14,743,760 Maple shares.

In a news release, Carmanah said GFB Resources operates and holds 80 percent of the Langsa Technical Assistance Contract offshore northern Sumatra, Indonesia, together with related tangible assets.

It said the shares acquired represent 4.99 percent of Maple's diluted shares. The shares are freely tradable, will initially be held for investment purposes and may be sold for funds for general corporate purposes.

Carmanah said it will use the cash proceeds to repay bank debt.

In October, Carmanah, an oil and gas company, agreed in a settlement with lenders to sell some or all of its Indonesian assets by Nov. 30 to reduce debt.