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Glencore secures further shares in Chad-focused oil explorer

Glencore secures further shares in Chad-focused oil explorer

Photo by Bloomberg

29th April 2014

By: Natalie Greve

Creamer Media Contributing Editor Online

  

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JOHANNESBURG (miningweekly.com) – Following an earlier agreement, GlencoreXstrata subsidiary Glencore International on Tuesday acquired 4.15-million shares of Chad-focused energy explorer Caracal Energy, representing 2.83% of Caracal’s outstanding common shares, bringing Glencore’s total stake in the company to 18.9-million shares, or 12.35%.

The acquisition, which was made through Glencore subsidiary 8682321 Canada, saw the group buy shares at an agreed price of £5.50 apiece after its all-cash offer of $1.4-billion was accepted by Caracal earlier this month.

Mining Weekly Online reported at the time that the arrangement with Caracal allowed 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 the country

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Edited by Tracy Klückow
Creamer Media Contributing Editor

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