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UNITED STATES/
VANCOUVER, BC, Sept. 22, 2020 /CNW/ - Africa Energy
Corp. (TSXV: AFE) (Nasdaq First North Growth Market: AEC)
("Africa Energy" or the "Company"), an oil and gas
company with exploration assets offshore South Africa and Namibia, announces that it has successfully
completed the book-building for the previously announced equity
issue (the "Private Placement") of common shares in the
Company (the "Offer Shares"). View PDF version
After upsizing from the original offer size of USD 25 million, the SEK denominated Private
Placement is expected to result in aggregate gross proceeds of
approximately USD 28 million to the
Company through the issuance of 81,667,000 Common Shares at a price
of SEK 3.00 (corresponding to
approximately CAD 0.45) per share
(the "Subscription Price"). Following the closing of the
Private Placement, the number of outstanding Common Shares will be
883,940,268.
Closing of the Private Placement is expected to occur on or
about September 30, 2020, subject to
satisfaction of certain customary conditions to closing, including
approval from the TSX Venture Exchange.
The net proceeds from the Private Placement are expected to be
used to finance the increased funding obligations from the ongoing
drilling program of up to three exploration wells on Block
11B/12B
offshore South Africa resulting
from the pending transactions to increase the Company's effective
interest in Block 11B/12B from 4.9% to 10% announced on 24 August
2020.
Garrett Soden, President and
CEO of Africa Energy, commented:
"The upsized private placement was significantly
oversubscribed, demonstrating strong investor support for our
drilling campaign offshore South
Africa. We continue to be excited about the world-class
potential of Block 11B/12B, and we look forward to drilling results from
the Luiperd-1X exploration well next quarter."
Pareto Securities acted as sole global coordinator and sole
bookrunner, and Arctic Securities AS and Fearnley Securities AS
acted as co-managers for the Private Placement.
About Africa Energy Corp.
Africa Energy Corp. is a Canadian oil and gas company with
exploration assets offshore South
Africa and Namibia. The
Company is listed in Toronto on
TSX Venture Exchange (ticker "AFE") and in Stockholm on Nasdaq First North Growth Market
(ticker "AEC"). Africa Energy is part of the Lundin Group of
Companies.
Important information
Africa Energy is obliged to make this information public
pursuant to the EU Market Abuse Regulation. The information was
submitted for publication through the agency of the contact persons
set out above on September 22, 2020
at 1:00 a.m. ET.
The Company's certified advisor on Nasdaq First North Growth
Market is Pareto Securities AB, +46 8 402 5000,
certifiedadviser.se@paretosec.com.
The information in this press release does not contain or
constitute an offer to sell or acquire, a solicitation of an offer
to acquire, subscribe or otherwise trade in shares or other
securities in Africa Energy.
This press release is not a prospectus for the purposes of
Regulation (EG) 2017/1129 of the European Parliament and of the
Council of 14 June 2017 on the
prospectus to be published when securities are offered to the
public or admitted to trading on a regulated market, and repealing
Directive 2003/71/EC (the "Prospectus Regulation") and has not been
approved by any regulatory authority in any jurisdiction. Africa
Energy has not authorized any offer to the public of shares or
rights in any member
state of the European Economic Area ("EEA") and no prospectus
has been or will be prepared in connection with the Private
Placement. In any EEA member state, this communication is only
addressed to and is only directed at qualified investors in that
member state within the meaning of the Prospectus
Regulation.
This press release may not be published or distributed,
directly or indirectly in or into the
United States or any other jurisdiction where such action is
wholly or partially subject to legal restrictions or where such
action would require prospectuses, registrations or other actions
in addition to what follows from Swedish or Canadian law. Nor may
the information in this press release be forwarded, reproduced or
disclosed in such a manner that contravenes such restrictions or
would require such requirements. Failure to comply with this
instruction may result in a violation of applicable securities
laws.
No shares will be registered under the United States
Securities Act of 1933 ("Securities Act"), as amended, or any U.S.
state securities laws or securities legislation in any other state
or other jurisdiction in the United
States and may not be offered, subscribed, sold or
transferred, directly or indirectly within the United States or to the account or benefit
of a U.S. person or a person in the U.S. other than pursuant to an
exemption from the registration requirements of the Securities Act
and in accordance with securities laws in relevant state or other
jurisdiction in the United
States.
Forward looking statement advisory
Certain statements contained in this press release constitute
forward-looking information. These statements relate to future
events or the Company's future performance, business prospects or
opportunities including, without limitation, statements with
respect to the satisfaction of closing conditions and proposed
Application Period, which are based on assumptions of management of
the Company.
The use of any of the words "will", "expected" and similar
expressions and statements relating to matters that are not
historical facts are intended to identify forward-looking
information and are based on the Company's current belief or
assumptions as to the outcome and timing of such future events.
These forward-looking statements involve risks and uncertainties
relating to, among other things, changes in oil prices, results of
exploration and development activities, uninsured risks, regulatory
changes, defects in title, availability of materials and equipment,
timeliness of government or other regulatory approvals, actual
performance of facilities, failure to satisfy the closing
conditions of the Private Placement, availability of third party
service providers, equipment and processes relative to
specifications and expectations and unanticipated environmental
impacts on operations. Actual future results may differ materially.
Various assumptions or factors are typically applied in drawing
conclusions or making the forecasts or projections set out in
forward-looking information. Those assumptions and factors are
based on information currently available to the Company. The
forward-looking information contained in this release is made as of
the date hereof and the Company is not obligated to update or
revise any forward-looking information, whether as a result of new
information, future events or otherwise, except as required by
applicable securities laws. Because of the risks, uncertainties and
assumptions contained herein, investors should not place undue
reliance on forward-looking information. The foregoing statements
expressly qualify any forward-looking information.
The operator of Block 11B/12B is
currently drilling the Luiperd-1X well, the results of which are
currently unknown and are not expected to be known prior to
allocation and completion of the Private Placement. However, the
timing of the results is unknown, and results may be reported by
the operator prior to the completion of the Private Placement.
There is no certainty that such results will be positive, and the
Company will only make announcement of the results thereof in
accordance with its obligations under applicable securities
laws.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Africa Energy Corp.
