ReconAfrica (TSXV: RECO) is expanding its ownership in its flagship asset. The company has reportedly met a definitive purchase and sale agreement with Namcor Exploration to acquire a portion of its stake in the Kavango Basin.
The arrangement will see ReconAfrica acquire half of Namcor’s 10% stake in the 6.3 million acres of petroleum exploration licenses within the basin of NE Namibia. The transaction will see the company increase its stake of the Northeastern Namibian project to 95% as a result. The company meanwhile already owns a 100% stake in the portion of the property located within Northwestern Botswana.
In consideration for the additional 5% stake, the company will issue to Namcor 5.0 million common shares at a price of $6.35 per each, equating to $31.75 million in value. A cash payment of $2.0 million will also be made.
The purchase is expected to close before the end of 2022, subject to regulatory approvals, including from governmental authorities.
READ: ReconAfrica Confirms With BCSC No Investigation Is Currently Underway
The company also indicated this morning that it is seeking exchange approval to extend the expiry of 7.5 million warrants that expire on October 31. ReconAfrica is looking to push the expiry date to March 31, 2023, while keeping the exercise price at $9.00 per share.
ReconAfrica last traded at $4.65 on the TSX Venture.
Information for this briefing was found via Sedar and Reconnaissance Energy Africa Ltd. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
