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Africa Energy Secures Credit Facility
Africa Energy Secures Credit Facility Canada NewsWire VANCOUVER, BC , ...
About this update from Africa Energy Corp.
[{"type":"text","content":"\n \n \n \n Africa Energy Secures Credit Facility\n \n \n /* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n \n \n \n \n \n \n Canada NewsWire\n \n \n \n \n \n \n VANCOUVER, BC\n \n \n ,\n \n \n Dec. 19, 2022\n \n \n /CNW/ -\n \n Africa Energy Corp.\n \n (TSXV: AFE) (Nasdaq First North: AEC) (\"Africa Energy\" or the \"Company\") announces that it has secured a\n \n US$5 million\n \n credit facility from Africa Oil Corp. (\"Africa Oil\"), Deepkloof Limited and Lorito Holdings S.à.r.l. (together, the \"Lenders\").\n \n View PDF Version\n \n \n \n \n Jeromie Kufflick\n \n , 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\n \n 11B\n \n /\n \n 12B\n \n offshore\n \n South Africa\n \n . The Block\n \n 11B\n \n /\n \n 12B\n \n joint venture has applied for a production license and is currently negotiating the gas offtake with potential customers in Mossel Bay.\"\n \n \n The\n \n US$5 million\n \n credit facility is unsecured and matures on\n \n January 31, 2024\n \n , when the principal and accrued interest are due in full. The loan carries an annual interest rate of 10% until\n \n October 31, 2023\n \n , at which time the annual interest rate for any outstanding amount increases to 15% retrospectively.\n \n \n The proceeds of the loan facility are expected to be used for the Company's funding obligations to advance the development of Block\n \n 11B\n \n /\n \n 12B\n \n offshore\n \n South Africa\n \n , as well as for general corporate purposes.\n \n \n 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 consi...