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Eco (Atlantic) Oil and Gas Ltd. Announces Final Closing of Additional Interest - Block 3B/4B
Receipt of Government Approval and Closing of the Acquisition of Additional Interest in Block 3B/...
About this update from Eco (atlantic) Oil & Gas Ltd.
[{"type":"text","content":"Eco (Atlantic) Oil and Gas Ltd. Announces Final Closing of Additional Interest - Block 3B/4BReceipt of Government Approval and Closing of the Acquisition of Additional Interest in Block 3B/4B, South AfricaTORONTO, ON / ACCESSWIRE / December 19, 2022 / Eco Atlantic (AIM: ECO)(TSX‐V: EOG),the oil and gas exploration company focused on the offshore Atlantic Margins, announces an update, further to its announcement of 27 June 2022, in relation to the acquisition by its wholly owned subsidiary Azinam Limited (\"Azinam\") of an additional 6.25% Participating Interest in Block 3B/4B, offshore South Africa from the Lunn Family Trust (the \"Vendor\"), one of the shareholders of Ricocure (Proprietary) Limited (\"Ricocure\") (the \"Acquisition\"). Eco is pleased to confirm that it has now received the requisite regulatory approvals from the Department of Mineral Resources and Energy (\"DMRE\") of South Africa and the Petroleum Agency of South Africa (\"PASA\") in respect of the Acquisition, which was the final condition in respect of completion.Accordingly, Eco Atlantic, through Azinam, will now close the Acquisition and hold an increased Participating Interest of 26.25% in Block 3B/4B, with Africa Oil Corp., the Operator of the block, holding a 20% Participating Interest, and Ricocure, holding the remaining 53.75% Participating Interest.In accordance with the completion consideration outlined in Eco's announcement on 27 June 2022, the Company will now:pay a cash amount of US$500,000 to the Vendor;issue to the Vendor new Common Shares at the agreed price of 30p (CAD$0.48) having an aggregate value of US$500,000issue to the Vendor new Common Shares at the agreed price of 30p (CAD$0.48) having an aggregate value of US$3 million, which will be subject to special lock up restrictions (as further detailed below) (the \"Restricted Shares\");issue to the Vendor new Common Shares at the agreed price of 30p (CAD$0.48) having an aggregate value of US$2 million; andissue to the Vendor, new Common Shares equal to US$2 million divided by the greater of (i) the value of the 30 day VWAP per Common Share prior to the date of the press release announcing the issue of such Common Shares; and (ii) the lowest issuance price then allowed by the rules of the TSXV and AIM (to the extent then listed on such markets, otherwise the average (if listed on more...