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.à.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.à.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
Important information
This is information that Africa Energy is obliged to make
public pursuant to the EU Market Abuse Regulation. The information
was submitted for publication through the agency of the contact
persons set out above on December 19,
2022, at 2:00 a.m. Eastern
Time.
The Company's certified advisor on Nasdaq First North Growth
Market is Aktieinvest FK AB, +46 739 49 62 50,
rutger.ahlerup@aktieinvest.se.
Forward looking statements
Certain statements contained in this press release constitute
forward-looking information. These statements relate to future
events or the Company's future performance, business prospects and
opportunities, which are based on assumptions of
management.
The use of any of the words "will", "expected", "planned" and
similar expressions and statements relating to matters that are not
historical facts are intended to identify forward-looking
information and are based on the Company's current belief or
assumptions as to the outcome and timing of certain future events.
These forward-looking statements involve risks and uncertainties
relating to, among other things, changes in oil prices, results of
exploration and development activities, including results, timing
and costs of exploration and development activity in the Company's
area of operations and, uninsured risks, regulatory changes,
defects in title, availability of funds required to participate in
the exploration and development activities, or of financing on
reasonable terms, availability of materials and equipment on
satisfactory terms, outcome of commercial negotiations with
government and other regulatory authorities, timeliness of
government or other regulatory approvals, actual performance of
facilities, availability of third party service providers,
equipment and processes relative to specifications and expectations
and unanticipated environmental impacts on operations. Actual
future results may differ materially. Various assumptions or
factors are typically applied in drawing conclusions or making the
forecasts or projections set out in forward-looking information.
Those assumptions and factors are based on information currently
available to the Company. The forward-looking information contained
in this release is made as of the date hereof and the Company is
not obligated to update or revise any forward-looking information,
whether as a result of new information, future events or otherwise,
except as required by applicable securities laws. Because of the
risks, uncertainties and assumptions contained herein, investors
should not place undue reliance on forward-looking information. The
foregoing statements expressly qualify any forward-looking
information.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Africa Energy Corp.