Africa Energy completes US$25 million private placement

On February 5, 2020, Africa Energy Corp. ("Africa Energy") announced the closing of its equity issue of common shares in the company. The private placement rendered gross proceeds of US$25 million through the issuance of 104,652,174 common shares at a price of approximately C$0.32 per share. Following the private placement, the company has 789,304,935 common shares outstanding.

Payment for the common shares was made in cash. The net proceeds are expected to be used to finance the drilling of up to three exploration wells on Block 11B/12B offshore South Africa and for general corporate purposes.

Pareto Securities acted as sole bookrunner and SpareBank1 Markets as co-manager. The private placement includes four related parties of the company: 1) Africa Oil Corp.; 2) Lorito Holdings S.a.r.l., a private corporation owned by a trust whose settlor was the late Adolf H. Lundin; 3) Rojafi, a UK investment company controlled by Africa Energy's Chairman, Ashley Heppenstall; and 4) Garrett Soden, the Company's President and CEO.

Further information can be found on Canada Newswire's website.

Africa Energy is a Canadian oil and gas company with exploration assets offshore South Africa and Namibia.