Octant Energy Corp (CVE:OEL, NEX:OEL) has told investors that it continues to make progress towards satisfying the conditions to acquire assets in Kenya and Tanzania.
In late 2015, the company agreed a deal to acquire the assets from subsidiaries of Afren Plc, and the transactions require customary approvals from the respective governments of Kenya and Tanzania.
Octant is now working to complete the deals, with a long-stop date of April 30.
As it advances towards the deal completion, the company is arranging a US$10mln financing and it has entered into a term sheet with Rosseau Asset Management.
“The position taken by Rosseau to support the efforts of Octant in its acquisitions speaks volumes about the quality of these assets,” said Rick Schmitt, Octant chief executive.
“I look forward to moving these assets forward expeditiously in a meaningful way and positively enhancing the value for all interested parties including the people of Tanzania and Kenya.”
The financing will carry 8% interest per year, and will be issued in three tranches – with US$1mln in the first tranche.
The first tranche of the financing will be used to complete the acquisition of the Tanga Block, offshore Tanzania.
Tranches two and three will be used US$4.5mln will be used to acquire the Kenyan assets, Block L17/L18 and Block 1.
Block L17/L18 is found in the Lamu coastal basin, off the south coast, while Block 1 is located on the western margin of the Mandera-Lugh basin.
Story by ProactiveInvestors