VANCOUVER, BC, Dec. 19, 2022 /CNW/ - Africa Energy Corp. (TSXV: AFE) (Nasdaq First North: AEC) ("Africa Energy" or the "Company") announces that it has secured a US$5 million credit facility from Africa Oil Corp. ("Africa Oil"), Deepkloof Limited and Lorito Holdings S..r.l. (together, the "Lenders"). View PDF Version
Jeromie Kufflick, Africa Energy's CFO, commented: "We are grateful for the continued support of our key shareholders demonstrated by this bridge loan facility. The funding allows us to minimize shareholder dilution while we advance the proposed development of the large gas condensate discoveries on Block 11B/12B offshore South Africa. The Block 11B/12B joint venture has applied for a production license and is currently negotiating the gas offtake with potential customers in Mossel Bay."
The US$5 million credit facility is unsecured and matures on January 31, 2024, when the principal and accrued interest are due in full. The loan carries an annual interest rate of 10% until October 31, 2023, at which time the annual interest rate for any outstanding amount increases to 15% retrospectively.
The proceeds of the loan facility are expected to be used for the Company's funding obligations to advance the development of Block 11B/12B offshore South Africa, as well as for general corporate purposes.
The loan from Africa Oil constitutes a "related-party transaction" as defined under Multilateral Instrument 61–101 ("MI 61–101"). The Company has relied on exemptions contained in sections 5.5(a) and 5.7(1)(a) of MI 61–101 from the valuation and minority shareholder approval requirements in MI 61–101 in respect of Africa Oil's loan since the fair market value of the consideration for the loan does not exceed 25% of the Company's market capitalization.
Deepkloof Limited is the largest shareholder of Impact Oil & Gas Limited and is a wholly-owned subsidiary of Hosken Consolidated Investments ("HCI") Limited. Lorito Holdings S..r.l. is a company owned by a trust whose settlor was the late Adolf H. Lundin.
About Africa Energy Corp.
Africa Energy Corp. is a Canadian oil and gas exploration company focused on South Africa. The Company is listed in Toronto on TSX Venture Exchange (ticker "AFE") and in Stockholm on Nasdaq First North Growth Market (ticker "AEC"). Africa Energy is part of the Lundin Group of Companies.
www.africaenergycorp.com