LONDON, Nov. 12, 2020 (GLOBE NEWSWIRE) -- Impact Oil & Gas Limited, a privately-owned, African-focused exploration company, (“ Impact ” or the “ Company ”), is pleased to announce that it has completed the transaction whereby it became a major shareholder of Africa Energy Corp. (TSXV: AFE and Nasdaq First North: AEC) (“ Africa Energy ”).
On 12 November 2020, Impact acquired 509,092,771 common shares (the “ Shares ” and each, a “ Share ”) in the capital of Africa Energy pursuant to a subscription agreement (the “ Subscription Agreement ”) dated August 24, 2020 (the “ Subscription ”).
The Shares were acquired at a price of US$0.155178 per Share, for aggregate consideration of US$79,000,000.00. Prior to the Subscription, Impact did not own or control any common shares or securities convertible into common shares of Africa Energy. Immediately following the Subscription, Impact owned a total of 509,092,771 common shares, representing approximately 36.55% of Africa Energy’s issued and outstanding common shares.
Impact acquired the Shares for investment purposes. Impact may from time to time acquire additional securities, dispose of some or all of the existing or additional securities or may continue to hold the securities of Africa Energy in accordance with applicable securities regulations.
Impact is also party to an investment agreement (the “ Investment Agreement ”) dated August 24, 2020 between Impact, Africa Energy and Impact Oil & Gas SA Blocks 11B-12B Limited ( Impact 11B-12B ), a wholly owned subsidiary of Impact, pursuant to which Africa Energy acquired the indirect financial interest held by Impact 11B-12B in Main Street 1549 (Proprietary) Limited (the “ Impact Transaction ”).
Under the Investment Agreement, Impact has the right, for so long as it holds not less than 10% of the common shares in the capital of Africa Energy and subject to the terms and conditions of the Investment Agreement, to appoint one nominee to the board of directors of Africa Energy. The Investment Agreement also provides for certain orderly market covenants in respect of any dispositions by Impact of the Shares, customary standstill provisions for a period of 12 months and certain restrictions on the issuance of common shares (or securities convertible into common shares) by Africa Energy prior to closing of the Impact Transaction, subject to certain exceptions.
The Subscription is part of a series of transactions, including the Impact Transaction, which have resulted in Impact’s indirect interest in Block 11B/12B offshore South Africa, held through Impact 11B/12B, being consolidated under Africa Energy.
Enquires:
Impact Oil and Gas
Robert Wilde, CFO
+44 1483 750 588
PR & Media: Camarco
Georgia Edmonds, James Crothers, Hugo Liddy
+44 20 3757 4980
About Impact Oil & Gas
Impact is a privately owned oil and gas exploration company with a strategic focus on large scale, mid to deep water plays of sufficient materiality to be of interest to major companies. The company’s objective is to build a world class portfolio of drillable prospects, in a number of different geologic and geographic locations to minimise risk. By doing so, and by having high-calibre oil industry partners validate its exploration concepts and ideas, management believes that the Company is best placed to potentially deliver substantial shareholder value in the medium to longer term.
The company acquired its first asset offshore South Africa in 2011 and has subsequently expanded its asset base across the offshore margins of Southern and West Africa, partnering with super-majors across its portfolio. The company’s current portfolio covers a combined area of over 110,000 km 2 (gross) (including an indirect interest in Block 11B/12B, South Africa).
The head office of Impact is located at Griffin House, West Street, Woking, Surrey, GU21 6BS, United Kingdom.
About Africa Energy
Africa Energy Corp. is a Canadian oil and gas company with exploration assets offshore South Africa and Namibia. Africa Energy 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 and currently has 1,393,033,039 common shares outstanding.
The head office of Africa Energy is located at suite 2000 Park Place, 885 West Georgia Street, Vancouver, British Columbia, V6C 3E8, Canada.
