Sunbird secures A$25m to advance Ibhubesi development
Pan-African investment company Vandasia Investments will acquire a 43.9% interest in Southern African gas explorer and developer Sunbird Energy for about A$25-million.
The investment company would acquire an initial 20.37-million Sunbird shares for $5-million within ten business days.
Subject to shareholder approval and the execution by Sunbird of a gas sales term sheet with a potential customer, Vandasia would acquire a further 23.02-million Sunbird shares for $9.35-million.
The second stage of the transaction would also include the acquisition and conversion of 47.75-million options, which would result in Sunbird receiving an additional amount of about $8.85-million. The exact amounts would be subject to the exchange rate.
ASX-listed Sunbird on Tuesday said Vandasia had extensive industry experience in Africa and would be a major strategic partner in helping to advance the development of the Ibhubesi gas project in South Africa.
“Sunbird is pleased to welcome Vandasia as a strategic partner and major new shareholder. The investment by Vandasia demonstrates the value proposition of the Ibhubesi gas project as South Africa’s largest undeveloped gasfield and the advanced nature of our gas supply negotiations with potential customers.
“This transformational financing deal ensures Sunbird is fully funded to advance Ibhubesi through front-end engineering and design studies, commercial negotiations and regulatory approval to a final investment decision in 2015,” commented Sunbird chairperson Kerwin Rana.
“Vandasia is excited to support Sunbird in providing cheaper, cleaner gas to an energy-constrained market and contribute positively to South Africa’s energy mix.
“Importantly, the Sunbird transaction can begin to shepherd in an era of migration to gas as a power source for Africa at large, proving both the technical and financial viability of the resource for generation input,” added Vandasia CEO Dr TJ Lupepe.
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