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RECONAFRICA ENTERS INTO DEFINITIVE AGREEMENT FOR THE SALE OF ITS MEXICO OPERATIONS
RECONAFRICA ENTERS INTO DEFINITIVE AGREEMENT FOR THE SALE OF ITS MEXICO OPERATIONS Cana...
About this update from Reconnaissance Energy Africa Ltd.
[{"type":"text","content":"\n \n \n \n RECONAFRICA ENTERS INTO DEFINITIVE AGREEMENT FOR THE SALE OF ITS MEXICO OPERATIONS\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 Oct. 26, 2023\n \n \n /CNW/ - Reconnaissance Energy Africa Ltd. (the \"Company\" or \"ReconAfrica\") (TSXV: RECO) (OTCQX: RECAF) (\n \n Frankfurt\n \n : 0XD) is pleased to announce that it has entered into a definitive agreement for the sale of its\n \n Mexico\n \n operations.\n \n \n \n \n \n \n \n \n \n Pursuant to a Share Purchase Agreement entered into between Chame Energy Corporation (\"Chame\") and the Company (the \"Agreement\"), Chame has agreed to purchase all of the issued and outstanding shares of Renaissance Oil Corp. (\"RenCan\"), a wholly-owned subsidiary of the Company. RenCan, through its subsidiaries, owns all of the Company's assets in\n \n Mexico\n \n . The effective date of the Agreement is\n \n October 25, 2023\n \n , with closing subject to acceptance by the TSX Venture Exchange (\"TSXV\"). Chame is not a Non-Arms Length Party of the Company, as defined in the policies of the TSXV.\n \n \n The deemed purchase price for the transaction is\n \n US$7,500,000\n \n . A wholly-owned subsidiary of RenCan had provided a loan to RenCan in the amount of\n \n US$7,500,000\n \n . RenCan, in turn, provided a loan in equal amount to ReconAfrica (collectively the \"Inter-Company Loans\"). Pursuant to the Agreement, all Inter-Company Loans, and any other inter-company loans between the Company and RenCan and any of its subsidiaries, are deemed satisfied in full and terminate upon closing without further recourse. In addition, under the Agreement Chame will assume all debts of RenCan and its subsidiaries, along with all present and future liabilities of RenCan and its subsidiaries.\n \n \n Under the terms of a finder's fee agreement between the Company and\n \n Willem Veltman\n \n and\n \n Kevin Smith\n \n (collectively the \"Finders\"), the Company is obligated to pay to the Finders the aggregate amount of\n \n US$200,000\n \n upon closing of the...