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Africa Energy Corp
Symbol AFE
Shares Issued 1,407,812,249
Close 2023-11-07 C$ 0.11
Market Cap C$ 154,859,347
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Africa Energy increases credit facility to $8.3M (U.S.)

2023-11-07 18:03 ET - News Release

Mr. Jeromie Kufflick reports


Africa Energy Corp. has amended its existing credit facility, increasing the amount available from $5.0-million (U.S.) to $8.3-million (U.S.) and extending the maturity date to March 31, 2025, with Africa Oil Corp., Deepkloof Ltd., Lorito Doraline Sarl, Lorito Floreal Sarl, Lorito Arole Sarl and Lorito Orizons Sarl.

Jeromie Kufflick, Africa Energy's chief financial officer, commented: "We are grateful for the continued support of our key shareholders demonstrated by this amended credit facility. The funding allows us to minimize shareholder dilution while we advance the proposed development of the large gas condensate discoveries on block 11B/12B offshore South Africa. The block 11B/12B joint venture has applied for a production licence and is currently negotiating the gas offtake with potential customers in Mossel Bay."

The $8.3-million (U.S.) credit facility is unsecured and matures on March 31, 2025, when the principal and accrued interest are due in full. The loan carries an annual interest rate of 15 per cent from inception of the original facility. Subject to TSX Venture Exchange approval, in the event that the company cannot reasonably fulfill its obligations under this credit facility at maturity, each of the lenders has the ability to convert the company's obligations due into common shares of Africa Energy at the then prevailing market price.

The proceeds of the loan facility are expected to be used for the company's financing obligations to advance the development of block 11B/12B offshore South Africa, as well as for general corporate purposes.

The loan from Africa Oil constitutes a related-party transaction as defined under Multilateral Instrument 61-101. The company has relied on exemptions contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101 from the valuation and minority shareholder approval requirements in MI 61-101 in respect of Africa Oil's loan since the fair market value of the consideration for the loan does not exceed 25 per cent of the company's market capitalization.

Deepkloof is the largest shareholder of Impact Oil & Gas Ltd. and is a wholly owned subsidiary of Hosken Consolidated Investments Ltd. Lorito Doraline, Lorito Floreal, Lorito Arole and Lorito Orizons are companies owned by trusts whose settlor was the late Adolf H. Lundin.

About Africa Energy Corp.

Africa Energy is a Canadian oil and gas exploration company focused on South Africa. The company is listed in Toronto on the TSX Venture Exchange (ticker AFE) and in Stockholm on the Nasdaq First North Growth Market (ticker AEC).

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