logo-loader

SacOil shares shoot up on Yorkville settlement

Last updated: 09:16 01 Nov 2012 EDT, First published: 10:16 01 Nov 2012 EDT

no_picture_pai

Shares in SacOil (LON:SAC) shot up 10% after the Africa-focused oil firm revealed it will be able to settle the debt owed to Yorkville after being handed US$3 mln (£1.86 mln).

Nigerian partner Energy Equity Resources (EER) paid it the funds as part of what it owes SacOil.

The company said the money will help it settle outstanding balances to Yorkville after it borrowed US$3.4 mln from the investment manager.

The funds went towards the US$10 mln cash collateral needed as part of the posting of the US$25 mln performance bond in April, which it used to begin work on the OPL 233 oil concession in Nigeria.

SacOil added that it will settle the remaining debt with Yorkville by paying US$1 mln in cash and issuing just over 35 mln new SacOil shares to Yorkville at around 2.3 pence each (R0.32) to raise around US$1.2 mln (£742,000).

The issue is in line with the terms of the Standby Equity Distribution Agreement between the two parties, approved by SacOil’s shareholders in November last year.

Yorkville has placed more than half of the shares from this issue to off market investors and has agreed to holding restrictions relating to the rest of the shares.

The company will apply to the Johannesburg Stock Exchange and London’s AIM market for the listing of the shares, which is expected to take place on November 13.

SacOil’s share price currently stands at 2.56 pence, after climbing more than 10% today.

Coniagas Battery Metals secures new key ground with focus on...

Coniagas Battery Metals (TSX-V:COS) CEO Frank Basa joined Steve Darling from Proactive to announce the company's strategic acquisition of key ground near SOQUEM’s Cardinal Property, located 80 km southeast of Chibougamau, Quebec. This acquisition underscores Coniagas’ commitment to capitalizing...

34 minutes ago