NAMIBIA – Reconnaissance Energy Africa (ReconAfrica), a Canadian oil and gas company, has announced that it has entered into a definitive purchase and sale agreement with its partner, Namcor Exploration and Production (NAMCOR).
The partnership is to acquire half of NAMCOR’s 10% carried participating interest in the approximate 6.3 million acres petroleum exploration licence (PEL 73) in the Kavango basin, NE Namibia (the Transaction).
Completion of the Transaction is expected to occur before the end of 2022 and is subject to the Company receiving all necessary regulatory approvals, including, but not limited to, approvals from a number of governmental authorities, including the Namibia Ministry of Mines and Energy, and the acceptance of the TSX Venture Exchange (TSXV).
All terms of the Transaction are as otherwise previously disclosed. ReconAfrica is also pleased to announce that, subject to receipt of required acceptance from the TSXV, the Company will extend the expiry of a total of 7,475,000 outstanding common share purchase warrants (the Warrants).
The Warrants were issued pursuant to a public offering which closed on March 1, 2022, pursuant to which the Company issued 7,475,000 units of the Company (each, a “Unit”) at a price of C$6.35 (US$4.67) per Unit.
Each Unit consisted of one common share of the Company (a “Share”) and one Warrant, with each Warrant entitling the holder thereof to purchase one additional Share until October 31, 2022, subject to acceleration in certain events, at an exercise price of C$9.00 (US$6.62).
The Warrants may be subject to acceleration of the expiry date to a date that is 30 calendar days following notice to be provided to the holders of the Warrants by the Company in the event that the moving volume weighted average trading price of the Shares on the TSXV over any period of 20 consecutive trading days equals or exceeds C$14.00 (US$10.30).
The term of the Warrants will be amended to extend the expiry date of the Warrants by five months from October 31, 2022, to March 31, 2023. All other terms and conditions of the Warrants will remain unchanged.