Africa Oil Corp. has signed a call and put option agreement with three shareholders in Impact Oil and Gas Limited to purchase a material 7% interest.
The Canadian company has a 31.1% shareholding in Impact Oil & Gas.
If exercised, the option agreement will increase Africa Oil’s Impact shareholding to 39.5%.
Impact Oil & Gas Limited has an 18.9% interest in Block 2912 and a 20.0% interest in Block 2913B in the Orange Basin.
Africa Oil Corp. will purchase 25,652,039 shares from 42 accepting shareholders for about US$18.6 million.
The company offered to acquire shares from minority shareholders in Impact Oil & Gas conditional upon completing the farm-down transaction for Impact Oil & Gas’ Namibia assets, which was announced on January 10, 2024.
Africa Oil Corporation said it decided to waive this condition and proceed to complete the offer.
Africa Oil Corp. Chief Executive Officer Dr Roger Tucker said that the company has been exposed to an exciting opportunity in Namibia’s Orange Basin through the shareholding in Impact.
The selling shareholders have the right to put their Impact shares to Africa Oil at an exercise price of GBP 0.57 until the expiry of the option period.
If the option agreement is exercised, Africa Oil will hold 449,464,396 shares in Impact, representing a 39.5% shareholding position on a fully diluted basis.
Under the option agreement, the company has the right to acquire an additional 80,160,198 shares in Impact at an exercise price of GBP 0.57 per share for up to six months from the option agreement’s signing date of August 27, 2024.
The company has purchased the call option feature for GBP 0.08 per underlying Impact share.
