Africa Energy To Complete Non-brokered Private Placement Of Up To 988 Mln Shares
Summary
Africa Energy Corp.(AFE_V.TO), a Canadian oil and gas exploration company, Monday announced that it plans to complete a non-brokered private placement of up to 988 million shares, priced at C$0.02 or $0.014 per share.The private placement aims to raise gross proceeds of approximately C$19.76 million or $13.75 million.Certain lenders of the companys existing debt have pledged their support. Deepkloof Limited has committed to participating in the private placement with a minimum contribution of $12.306 million and a maximum of up to $13.75 million referred to as the "Deepkloof Commitment. The rest of the money will go toward everyday business needs, completing the Environmental and Social Impact Report, getting the Production Right, and working on developing Block 11B/12B offshore South Africa.If Deepkloof invests the minimum amount, it will own about 36.9 percent of the companys shares, and if it invests the maximum amount, it will own about 41.2 percent, making it a "control person" of the company.Accordingly, the TSX Venture Exchange (TSXV) requires shareholder approval for the private placement. In order to meet this requirement, Africa Energy has already secured voting support agreements from Africa Oil Corp. and Impact Oil and Gas Limited, which together represent about 55.8% of the companys shares. These shareholders have agreed to vote in favor of the approval.Friday, HPMCF had closed at 0.0210.