Solo Oil Plc has announced that it has drawn down the first US$1 million of a US$5 million 3-year debt facility secured today, and has closed a Placing of £760,000 at 0.95 pence per share and a conditional Placing of £1.5 million at 0.95 pence per share which relates to a Placing and an Equity Swap Agreement with YA Global Master SPV, Ltd. (“YAGM”).
YAGM has agreed with the Company that they will not dispose of any shares acquired under their agreement for an initial 2 month period.
The first US$1 million of the US$5m debt facility with YA Global Master SPV Ltd carries a twelve-month repayment schedule at a fixed coupon of 10% with any subsequent drawdowns would be on the same terms and subject to approval by YAGM.
Solo chairman David Lenigas says the funding will help fund the company’s exploration interests in Tanzania.
“Solo now has one of the strongest balance sheets in the Company’s recent history and this funding will be used potentially to accelerate our efforts in Tanzania in light of the recent upgrades at our Ruvuma gas and condensate project and will also be used towards further potential farm-ins and investments in the oil and gas sector, including applications in the UK 14th onshore licensing round, in accordance with the Company’s stated investing policy,” he said.
The Ruvuma PSA covers 6079 square kilometers in the extreme south-east of Tanzania of which roughly 80% is onshore and 20% and has two specific, adjoining licence areas known as Lindi and Mtwara.