7th Sep 2015 08:21
LONDON (Alliance News) - Madagascar Oil Ltd on Monday said that an information memorandum has been finalised and a technical data room has been opened with the view to attract a strategic partner to assist the company with the funding and delivery of the initial phases of its Tsimiroro development.
Shares in Madagascar Oil were trading down 19% at 5.07 pence Monday morning following the announcement.
The company said that despite adverse market conditions, it has received interest from a number of credible parties, expecting the process to run through to the end of 2015, and with the target of finalising any transaction by the end of the first quarter of 2016.
Madagascar Oil added that it continues to progress discussions with investors to secure new financing to provide working capital, and that it has full drawn down its facility with a company connected to Outrider Management LLC, with repayments scheduled to begin on October 6.
"We are making steady progress in our search to secure a potential strategic partner(s), despite the prevailing difficult market conditions, and are very pleased with the level of interest being shown by a number of large international companies. The size of our resource base in Madagascar, the recent approval of our Development Plan for the Tsimiroro Block and the long-term nature of the Tsimiroro licence (at least 25 years from April 2015), is attracting companies of real scale and we will continue to work closely with Jefferies to secure a transaction which adds value for all of our shareholders," Chief Executive Robert Estill said in a statement.
"In the meantime, the company will seek to secure appropriate intermediate financing in the near term and is currently considering alternative funding options, including the proposals from certain of our existing major shareholders," he added.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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