VANCOUVER, BC, Oct. 22, 2020 /CNW/ - Africa Energy Corp. (TSX
Venture: AFE) (Nasdaq First North Growth Market: AEC) ("Africa
Energy" or the "Company") is pleased to announce that it has closed
its previously announced transaction pursuant to an investment
agreement (the "Investment Agreement") with Impact Oil & Gas
Limited ("Impact") and Impact Oil & Gas SA Blocks 11B-12B Limited
("Impact 11B/12B"). Closing of the Company's investment in
Impact 11B/12B in accordance with the Investment Agreement
is the first stage in a series of transactions designed to increase
the Company's effective interest in Block 11B/12B offshore
South Africa from 4.9% to 10% (the
"Transactions"), subject to various consents and approvals. View
PDF version.
The Transactions are described in the Company's news release
dated August 24, 2020, announcing the
signing of definitive agreements, and the news release dated
September 21, 2020, announcing the
special meeting of its shareholders and providing an update on the
status of the pending transactions.
Pursuant to the Investment Agreement, the Company has subscribed
for new shares and has obtained control of Impact 11B/12B, which was
a subsidiary of Impact immediately prior to closing, whose sole
asset is a loan agreement that provides for an indirect financial
interest in Main Street 1549 (Proprietary) Limited.
The Investment Agreement provides Impact with the right, for so
long as it holds not less than 10% of the common shares of Africa
Energy, to appoint one nominee to the board of directors of Africa
Energy. The Company's Board of Directors has appointed Impact's
nominee, John Anthony Copelyn, as a
director of Africa Energy effective today. Mr. Copelyn is CEO
of Hosken Consolidated Investments ("HCI"), a South
African black empowerment company and Impact's largest shareholder.
Prior to joining HCI, he was a member of Parliament in South Africa and general secretary of the
Southern African Clothing and Textile Workers Union.
Adam Lundin, Africa Energy's
Chairman, commented: "I would like to welcome Johnny Copelyn to the Board of Directors. His
knowledge and experience in South
Africa will be a great addition to the Board as we look to
maximize the value of our oil and gas assets for all
stakeholders."
Impact has also entered into a subscription agreement with
Africa Energy to subscribe for 509,092,771 common shares of Africa
Energy (the "Subscription Shares"). Closing for the remaining
stages of the Transactions and the issuance of the Subscription
Shares is expected to take place within the next thirty (30) days
subject to the completion of certain conditions including certain
filings at the UK Companies House. The Company will provide further
updates once closing of the Transactions has taken place or as may
otherwise be required in accordance with the policies of the TSX
Venture Exchange and applicable law.
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
This information is information that Africa Energy is obliged
to make 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 October
22, 2020 at 3:00 p.m.
ET.
The Company's certified advisor on Nasdaq First North
Stockholm is Pareto Securities AB, +46 8 402 5000,
certifiedadviser.se@paretosec.com.
Forward looking statements
Certain statements contained in this press release constitute
forward-looking information, including timing for completion of the
Transactions and the completion of such Transactions. These
statements relate to future events or the Company's future
performance, business prospects and opportunities, which are based
on assumptions of management.
The use of any of the words "will", "expected", "planned" 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 certain future events.
These forward-looking statements involve risks and uncertainties
relating to, among other things, timeliness of government or other
regulatory approvals. 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.
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.
