The loan carries an annual interest rate of 10% until October 31, 2023, at which time the annual interest rate for any outstanding amount increases to 15% retrospectively.
The proceeds of the loan facility are expected to be used for the company’s funding obligations to advance the development of Block 11B/12B offshore South Africa, as well as for general corporate purposes.
Jeromie Kufflick, Africa Energy’s CFO, commented: “We are grateful for the continued support of our key shareholders demonstrated by this bridge loan 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 license and is currently negotiating the gas offtake with potential customers in Mossel Bay.”
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