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Detailed Cautionary Announcement: Signing of an Agreement for the Acquisition of Three Petroleum Exploration Blocks
LABAT AFRICA LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1986/001616/06)
(“Labat” or “the company”)
ISIN Code: ZAE 000018354 Share code: LAB
DETAILED CAUTIONARY ANNOUNCEMENT REGARDING THE
SIGNING OF AN AGREEMENT FOR THE ACQUISITION OF THREE
PETROLEUM EXPLORATION BLOCKS, OFF-SHORE NAMIBIA AND
FURTHER CAUTIONARY ANNOUNCEMENT
Further to the cautionary announcement dated 17 May 2013 and the Reviewed
Condensed Provisional Results for the year ended 28 February 2013 (“Results
Announcement”), released on SENS on 31 May 2013, the Directors of Labat are
pleased to announce the signing of an agreement with Amicitia Holdings Limited
(“the Vendor”) on 20 June 2013, in terms of which it will acquire the entire issued
share capital of Palatina Petroleum Limited (“Palatina”) (“the Acquisition”) for an
acquisition price of US$14 million (“the Acquisition Consideration”). The
Acquisition, which is subject to the satisfactory completion of a due diligence
investigation and the fulfilment of other conditions precedent, will provide Labat with
an 85% participating interest in a licence issued by the Government of Namibia to
Palatina, for the right to engage in the exploration and development of oil and gas in
respect of leases numbered 1909, 2009 and 2414 in off-shore Namibia.
The Acquisition Consideration will be funded through a drawdown against an agreed
$100 million line of credit from GEM Global Yield Fund Limited and the issue of
additional shares in Labat. The rights offer referred to in the Results Announcement
will provide the company with additional working capital whilst giving existing
shareholders an opportunity to increase their shareholding in the company ahead of
the implementation of the Acquisition, which will have a dilutionary effect.
Full details of the proposed rights offer and the agreement will be released on SENS
in due course.
Shareholders are further advised that Labat is still in negotiations to acquire two
further leases from the Vendor and is in preliminary discussions aimed at acquiring a
further five leases from two other parties. Discussions are also taking place with
another party with a view to acquiring substantial South African proven gas reserves.
Shareholders are accordingly advised to continue to exercise caution when dealing in
the company’s securities until full and further announcements are made.
Johannesburg
21 June 2013
Sponsor:
Arcay Moela Sponsors (Pty) Ltd
Date: 21/06/2013 04:49:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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