Aminex is has said that it has received formal approval from the Tanzanian Authorities to sell up to 13% of its interest in Kiliwani North Development Licence (KNDL) to Solo Oil plc and thus there now remains no further conditions precedent to the sale of 6.5% KNDL to Solo for $3.5 million.
This follows the announcement by Aminex in early February that Solo had signed the Asset Purchase Agreement with Aminex plc for the first 6.5% interest in the Kiliwani North Development Licence (KNDL) at a total consideration of US$3,500,000.
Following this approval Solo retains the right to purchase an additional 6.5% on the same terms up to 30 days after the signing of the Gas Sales Agreement.
According to Aminex CEO Jay Bhattacherjee the sell of the interest will enable the company manage its debt.
“The completion of the transaction will allow us to pay down our debt and have a strengthened balance sheet which puts us in a positive position as we move towards first production. This is an exciting time for Aminex’s development and we look forward to updating shareholders with our progress,” He says.
The Dar es Salaam to Mnazi Bay pipeline is near completion and the final stages of construction to in the pipeline are now occurring on the Kiliwani North-1 well.
Aminex and Solo are already partners in the Ruvuma Production Sharing contract in Tanzania, with respectively 75% and 25% interests, where gas was discovered in 2012 at Ntorya-1. Aminex’s 100% owned subsidiary Ndovu Resources Limited is the operator of both the Ruvuma Production Sharing Agreement and the KNDL.