Asian Mineral Resources to acquire economic interest in the Oza Oil Field located in Niger Delta of Nigeria
On November 20, 2019, Asian Mineral Resources Limited ("AMR") announced that it entered into an agreement to acquire all the issued and outstanding shares of Decklar Petroleum Limited ("Decklar"), for an aggregate purchase price of C$8,550,000, payable through the issuance of 30,000,000 AMR common shares.
Decklar's sole asset is a Risk Service Agreement ("RSA") with Millenium Oil and Gas Company Limited ("Millenium"), which owns the Oza Field located onshore in the northern part of Oil Mining License 11 in the Eastern Niger Delta of Nigeria. The RSA entitles Decklar to cost recovery and a share of distributable funds from the Oza Field in exchange for technical and financial support.
Under the terms of the purchase agreement, 22,000,000 shares will be payable upon closing of the acquisition, in which 14,000,000 shares will be allocated to the shareholders of Decklar and 8,000,000 shares allocated to extinguish outstanding debt owed by Decklar to certain arm's length third parties. The remaining 8,000,000 shares will be payable only if the Oza Field achieves a minimum production rate within 12 months of closing.
Closing of the transaction is expected to occur in December 2019, subject to certain customary conditions, including the exercise of at least 10,000,000 of the 13,333,333 outstanding common share purchase warrants of AMR and approval by the TSX Venture Exchange.
Further information can be found on Globe Newswire's website.