September 22, 2020
Torys is representing Africa Energy with a team that includes Janan Paskaran and Jon McDonald (corporate/securities).
On September 22, 2020, Africa Energy Corp. ("Africa Energy") announced that it successfully completed the book-building for the previously announced equity issue of common shares in the company.
After upsizing from the original offer size of US$25 million, the SEK denominated private placement is expected to result in aggregate gross proceeds of approximately US$28 million to the company through the issuance of 81,667,000 common shares at a price of SEK 3.00 (corresponding to approximately C$0.45) per share. Following the closing of the private placement, the number of outstanding common shares will be 883,940,268. Closing of the private placement is expected to occur on September 30, 2020.
The net proceeds are expected to be used to finance the increased funding obligations from the ongoing drilling program of up to three exploration wells on Block 11B/12B offshore South Africa resulting from the pending transactions to increase the company's effective interest in Block 11B/12B from 4.9% to 10% announced on August 24, 2020.
Pareto Securities acted as sole global coordinator and sole bookrunner, and Arctic Securities AS and Fearnley Securities AS acted as co-managers for the private placement.
Africa Energy is a Canadian oil and gas company with exploration assets offshore South Africa and Namibia. Africa Energy is part of the Lundin Group of Companies.
Further information can be found on Canada Newswire’s website.