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Glencore acquires further interest in Caracal

2nd May 2014

By: Leandi Kolver

Creamer Media Deputy Editor

  

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JOHANNESBURG (miningweekly.com) – GlencoreXstrata subsidiary Glencore International on Wednesday acquired an additional 2.25-million shares in Chad-focused energy explorer Caracal Energy, representing 1.53% of Caracal’s outstanding common shares, bringing Glencore’s total stake in the company to 21.19-million common shares, or 13.82%.

The acquisition, which was made through Glencore subsidiary 8682321 Canada, saw the group buy shares at an agreed price of £5.50 apiece.

This acquisition brought Glencore’s total acquisition of Caracal common shares since April 14, when Glencore entered into an agreement with Caracal to increase its existing share in the company, to 12.4-million, which represented 8.45% of Caracal’s outstanding common shares on a nondiluted basis.

Mining Weekly Online reported in April that the $1.4-billion arrangement with Caracal would allow Glencore to take operatorship of Caracal’s oil development activities in Chad, where Caracal had three production-sharing contracts with the government, allowing it to explore and develop over 26 103 km2 in the south of Chad.

Pursuant to the arrangement agreement, Glencore and its affiliates were entitled to acquire additional Caracal common shares through purchases over a stock exchange up to 8.6% of the outstanding Caracal common shares on a nondiluted basis, therefore, Glencore could still acquire additional Caracal common shares.

Edited by Tracy Klückow
Creamer Media Contributing Editor

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