Aminex has notified shareholders that it has received confirmation from the Tanzanian Ministry of Energy and Minerals that the Minister has no objection to the proposed transfer of assignment for the sale to Solo of up to 13% of in the Kiliwani North Development Licence (‘KNDL’)
in Tanzania for a total consideration of $7 million.
The sale now remains subject only to a formal Deed of Assignment being completed and signed by all participating parties with the parties to the transaction will observe all customary Tanzanian tax clearance procedures.
Aminex and Solo will now proceed with the assignment of the initial 6.5% interest in KNDL for $3.5 million with the parties having agreed to extend the deadline on the option to purchase an additional 6.5% on the same terms to 30th January 2015 as a result of the longer than expected time taken to obtain the no objection notification.
The Kiliwani North Development Licence contains the Kiliwani North field which is expected to start production at approximately 20 mmcfd in early 2015.
‘The final step in the process of receiving approvals to our acquisition of an interest in the soon to be producing Kilwani North development has now been received and we look forward to signature of the gas sales agreement and to the start-up of the production in 2015,’says the Company’s Chairman Neil Ritson,
Once the Deed of Assignment is complete, and if Solo elects to take up its full 13% entitlement, the KNDL joint venture partners will be Ndovu Resources Ltd. (Aminex) 52% (operator), RAK Gas 25%, Bounty Oil 10% and Solo 13%.
Once producing, KNDL will represent a major milestone for Aminex by providing first revenues to the Company from its Tanzanian assets.
Independently verified resources at KNDL are estimated to be 45 billion cubic feet of gas in place.
Construction of a 2 km pipeline from the KN1 wellhead to the new Songo Songo processing plant is expected to be completed by the end of this month.
At the same time aminex has reported that a Gas Sales Agreement for KNDL is expected to be completed prior to the commissioning of the 2 km pipeline and the Songo Songo processing plant in early 2015.