Swala Energy has received interim funding from Hayaat International Limited a cornerstone investor who holds an equity interest of 9.2% of the Company.
The loan is to be made available in two equal tranches and is repayable from the proceeds of the farm-outs with Tata Petrodyne Limited TPL which farmed into the Pangani and Kilosa-Kilombero licences in Tanzania.
Other key terms for the Loan include that Swala will draw in US$500,000 tranches and no interest shall be payable on the Facility.
Other terms include that Swala will pay a fee of US$25,000 per US$500,000 tranche is payable and the Loan Facility is secured on the Company’s assets.
Swala and Hayaat have agreed the Loan Facility in order to advance the development of the Company’s assets pending the approval of the farm-outs by the relevant governmental authorities and as part of the financial planning for the farm-out undertaken during the past months.
“We are grateful to Hayaat International for their ongoing support and recognition of the efforts being undertaken by the Company’s personnel as we organise the government´s approval of our farm-outs. This interim loan facility allows the Company to fund its near-term operations without the need to raise equity from our shareholder base at a time of significant activity,” says Dr. David Mestres Ridge, CEO of Swala.
The Loan Facility will be used for working capital and the ongoing development of the Company’s licences in Tanzania, Kenya and Zambia.
Hayaat International Limited is a private investment company headquartered in Abu Dhabi that has been a strong supporter of Swala since its initial AU$3.3 million investment in the Company in November 2013.