Orca Exploration Group has announced termination of its investment agreement with Swala Oil and Gas (Tanzania).
A statement from Swala Oil notes that pursuant to the terms of its investment agreement dated December 29, 2017 with Orca Explorations Group Inc in respect of PAE PanAfrican Energy Corporation (PAEM), the parties have agreed to terminate the Agreement as a result of Swala not acquiring additional shares in the capital of PAEM.
Swala continues to hold 7.933% of the issued and outstanding shares of PAEM through the Company’s subsidiary Swala (PAEM) Limited.
Meanwhile Swala Oil is in discussions with a US-based emerging markets institutional investor for US$75 million in acquisition funding for a transaction.
“In furtherance of this possible transaction, Swala is currently finalizing terms for its funding, which when completed is expected to lead to financing agreements within the next weeks.” A statement from the oil and gas company in Tanzania reads in part.
According to Swala Oil CEO Dr. David Mestres Ridge , after considerable due diligence and engagement, the Company is finalizing commercial terms for an investment of US$75 million with an institutional investor with extensive experience in emerging markets.
“This capability, when formalised through to definitive agreements, should allow us to contemplate an additional transaction. There can be no guarantees that the financing or transaction contemplated, or any other, will be completed and the Company shall update the market as appropriate.” Said the CEO.