Africa Oil Announces C$65 Million Equity Subscription Financing

Africa Oil (TSX:AOI) announced that it has entered into an equity subscription agreement with International Finance Corporation for a non-brokered private placement to sell 31,169,048 common shares at a price of C$2.10 for gross proceeds of C$65,455,000.
As quoted in the press release:

Upon completion of the private placement IFC will hold approximately 6.83% of the issued and outstanding common shares of the Company.
IFC is the world’s largest global development institution focused exclusively on the private sector in developing countries.
Proceeds of the private placement will be used to fund the Company’s oil and gas exploration, appraisal and development activities, and general working capital requirements, primarily aimed at advancing the appraisal and development of the South Lokichar Basin in Blocks 10BB and 13T.
An application will be made to the Toronto Stock Exchange (the “TSX“) for approval of the private placement. The closing of the financing is subject to regulatory approval and certain other customary conditions. The Company expects the closing to occur on or around August 31, 2015. The new shares will be admitted to trading on Nasdaq Stockholm after they have been issued by the Company.

Keith Hill, president and CEO of Africa Oil, commented:

We are very pleased that we were able to attract an investment partner of the caliber of IFC and consider it an important endorsement of our project. This investment will underscore our commitment to conducting our operations to high social and environmental standards. The investment allows us to continue moving the Lokichar project forward in the difficult times of low oil prices and we hope that IFC will become a long term partner as we move the project into development. We also look forward to expanding this relationship as development accelerates in light of the recently announced export pipeline agreed by the Kenya and Uganda host governments.

Click here to read the full Africa Oil (TSX:AOI) press release.