30th Jul 2015 10:29
LONDON (Alliance News) - Savannah Petroleum PLC Thursday said shareholders have approved its large share placing in order to back its acquisition of the R3/R4 production sharing contract area in Niger.
Savannah conducted a conditional placing earlier in July of 61.7 million shares at 38 pence per share to raise GBP36 million, which has now been approved by shareholders at the company's general meeting earlier Thursday.
That means Savannah can progress with its acquisition of the production sharing contract which it called a "landmark transaction" for the company.
Savannah needed the funds from the placing to enable the posting of a bank guarantee with the government of Niger in relation to its planned acquisition of the R3/R4 production sharing contract in south-eastern Niger.
That bank guarantee has now been posted and Niger's Council of Ministers have approved the contract. Savannah said it expects to sign the contract with the government by mid-August, which is in line with its timetable.
Savannah shares were up 0.1% to 40.18 pence per share on Thursday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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