Business
MOU signed with Trafigura Pte Ltd
MOU signed with Trafigura Pte Ltd.
About this update from Adm Energy Plc
[{"type":"text","content":"\n \nRNS Number : 6631B ADM Energy PLC 03 February 2020 \n\nTHE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED TO CONSTITUTE INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) NO. 596/2014. UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.\n \n \n3 February 2020\n \nADM Energy plc\n \n(\"ADM\" or the \"Company\")\n \nMOU signed to create a proposed strategic alliance with Trafigura\nthat enables the development and financing of energy projects in Africa\n \nADM Energy PLC (AIM:ADME), an oil and gas investing company quoted on AIM, has entered into a non-binding memorandum of understanding (\"MOU\") with Trafigura Pte Ltd (\"Trafigura\"), a market leader in the global commodities industry whose core business is the physical trading of oil and petroleum products and metals and minerals, to develop investment opportunities in the African energy sector.\n \nUnder the terms of the MOU, it is the intention of ADM and Trafigura (together, the \"Parties\") to create a strategic alliance where ADM will act as the sponsor for investment opportunities in the African energy sector (\"Projects\") which will be presented to Trafigura for consideration as a trading counterparty, or financing provider.\n \nADM, as principal, will be responsible for originating, analysing, developing, structuring and negotiating the Projects with counterparties and presenting the Projects to Trafigura for further evaluation. Subject to a Project being approved by Trafigura (\"Approved Project\"), the Parties will negotiate a definitive agreement for each Approved Project.\n \nTrafigura will be entitled to provide ADM with conditional pre-financing of up to US$100 million for the acquisition or development of Approved Projects. It is anticipated that Trafigura may subscribe for up to US$20 million in convertible loan notes in ADM as definitive agreements and project funding for Approved Projects are agreed.\n \nSubject to any financing provided, Trafigura will have the exclusive rights to market the crude oil produced by the Approved Project on market terms and for an agreed period. In addition, ADM and Trafigura will cooperate to structure and arrange complementary debt and equity fun...