GREY:SMBZF - Post by User
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malinrobon May 19, 2017 5:19pm
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Post# 26266461
Email from Mark - Extra Funding
Email from Mark - Extra Funding Hi Robert,
The terms of the Joint Venture between Simba Essel Energy and EGME have not changed and remain valid. EGME is responsible for funding 100% of the exploration work, including drilling 2 wells in each country (Kenya, Guinea and Chad) in order to earn their 60% interest in each PSC in each respective country. Nothing with the agreement has changed.
That being said, Simba can always benefit from having revenue and cash flow which will help to offset the need for any further dilution. Simba does require its own working capital for day to day operations, etc. and there are no plans to dilute the stock in order to fund this type of project. The partnership of Simba Essel Energy and EGME are jointly seeking a producing asset to acquire, I should have included the term “and working capital” in that sentence, my apologies for any confusion.
There are many steps involved in this type of undertaking and at this time both groups are considering several options how to acquire such an asset and how to best structure
a deal so it is amicable for both Simba and EGME. There is a very good possibility that any asset acquired may then be divided 60-40% as per the existing agreement and partnership between the two entities.
There will more information and other details provided to shareholders when the Company is satisfied with its due diligence and is in a better position to elaborate on any terms involved.
Thank you,
Mark
Mark Sommer VP Corporate Communications Simba Essel Energy Inc. SMB – TSX Venture Suite 210-905 West Pender St. Vancouver, BC V6C-1L6 Canada #604-629-9647 - Direct #604-641-4450 - Office #855-777-4622 - Toll free mark@simbaenergy.ca www.simbaenergy.ca P Please consider the environment before printing this email.
From: Robert ZZZZ[mailto:robert.zzzz@zzzz.sk]
Sent: Friday, May 19, 2017 12:37 PM
To: Mark Sommer
Subject: Re: Simba Energy reply
It was written that “
Simba and EGME have been on the hunt for cash flow from producing assets in order to help fund its exploration campaigns””"
Should not full costs for the first two wells in every country be carried out by EGME as per joint venture contract?