Africa Oil announces private placement of US$125 million

Africa Oil announces private placement of US$125 million

Africa Oil Corp. (TSX:AOI)(OMX:AOI) (“Africa Oil”, “AOC” or the “Company”) said further to the announcement of February 12, 2015, that the Company has agreed to sell, on a brokered, private placement basis, an aggregate of approximately 57 million common shares at a price of SEK 18.5 (Cdn $2.74(1) equivalent), per share for gross proceeds of SEK 1,055 million, or US $125 million equivalent (the “Offering”).

Dundee Securities Europe LLP and Pareto Securities are acting as joint bookrunners (together the “Bookrunners”) to advise on and effect the private placement. Closing of the Offering is expected to occur on or about February 23, 2015, or such other dates as the Company and the Bookrunners may agree.

Common shares issued to Canadian residents will be subject to resale restrictions under Canadian securities laws for a period of four months plus one day from the date of the closing of the Offering. Subject to applicable securities laws, common shares issued to residents outside of Canada pursuant to the Offering may not be sold, transferred or otherwise disposed of on the TSX or, except pursuant to an exemption from prospectus requirements under Canadian securities laws, to any person in Canada or otherwise into Canada for a period of four months plus one day from the date of the closing of the Offering.

The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, or applicable state securities laws, and may not be offered or sold in the United States absent registration or an exemption from such registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

The closing of the Offering is subject to regulatory approval and certain other customary conditions including, but not limited to, the execution of a definitive agency agreement between the Company and the Bookrunners and approval of the Toronto Stock Exchange.

The new shares will be traded on Nasdaq Stockholm, subject to the Swedish Financial Supervisory Authority’s (Sw. Finansinspektionen) approval and registration of an admittance to trading prospectus regarding the new shares, and on the TSX, subject to approval from the TSX.

Source: Africa Oil Corp

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