Angus Energy enters MoU to provide up to £12m loan facility to Aleph to develop Saltfleetby gas field

Mon, 30th Nov 2020

Angus Energy said it had entered into a memorandum of understanding with Aleph Energy Limited and Aleph Commodities on non-binding heads of terms to provide up to £12 million toward the Saltfleetby finance facility required to develop the Saltfleetby gas field, onshore UK. Angus operated Saltfleetby and held a 51% working interest with Saltfleetby Energy, its partner, holding the remaining 49%. The four-year amortising loan facility of up to £12million included a 12% margin over LIBOR, a 3% commitment fee payable out of the facility, a share grant of 30 million shares in Angus, issued over the life of the facility and an override of 8% on gross revenue following repayment of the facility. Under the agreement, upon presentation of a suitable approved geothermal programme for a new off-site project before the end of January 2021 Aleph Energy and Aleph Commodities would together seek to procure up to a further £8 million of committed funding for that programme, the company said. Aleph had been granted a 90 day exclusivity period beginning on the date of the MOU in which to 'undertake customary legal and financial due diligence investigation in relation to Saltfleetby, the reasonable costs of which will be met by Angus,' it added. At 10:02am: (LON:ANGS) Angus Energy Plc share price was 0p at 0.7p Story provided by StockMarketWire.com

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