Gasol Upstream Limited Investment in Afrique Energie Corporation
Gasol, the AIM listed gas to power company, is pleased to announce that its upstream subsidiary, Gasol Upstream Limited (“Gasol Upstream”), has agreed to invest US$ 1million for 21,936,000 new common shares of Afrique Energie Corporation (“AEC”), giving it a 31.7% shareholding in AEC.
Gasol Upstream has also agreed to make an unsecured loan of US$1 million to AEC at an interest rate of 20 per cent per annum in exchange for a further 20,000,000 common shares in AEC being allotted to Gasol Upstream, taking its equity holding in AEC to 47%. The loan will mature on 13 November 2014.
As part of the transaction, Gasol Upstream will be entitled to representation on the Board of AEC.
AEC is a private Canadian registered company with an experienced management team in the oil and gas sector. AEC is a development company with total assets as at 30 April 2014 of CAD 4,463,285 comprising cash and prepaid expenses of CAD 199,525 and goodwill of CAD 4,263,760. Its net loss for the 12 month period ending 30 April 2014 was CAD 490,190.
Alan Buxton, Chief Operating Officer of Gasol said:
“We have been impressed with the management team at AEC and we look forward to working with them to source upstream gas assets.”