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Southern African gas explorer and developer Sunbird Energy has announced the completion of the Stage 1, USD$5,000,000, Vandasia Transaction, previously announced on 9 September 2014. The USD$5,000,000 Stage 1 investment by the Pan-African investment company Vandasia Investmentsfor subscription of 20,367,127 fully paid shares, equates to AUD$0.277 per share which is a premium of 45.6% to the Company’s closing share price on 8 September prior to announcement of the Transaction.
On completion of Stage 2 of the transaction, Sunbird will have received over AUD$25,000,000 in capital (subject to exchange rates) and will secure a major strategic partner in Vandasia to help advance development of theIbhubesi Gas Project in South Africa. Stage 2 of the investment, which is subject to shareholder approval and execution of a Gas Sales Term Sheet with a potential customer, is due for completion by 30 November 2014.
The Transaction involves two capital raisings at the equivalent weighted average price of approx. AUD$0.37 per share (subject to exchange rates) and the acquisition and conversion of 47,750,000 existing AUD$0.20 options, providing Vandasia a 43.9% interest in the Company. Overall, the transaction is priced at a premium of approximately 80% to Sunbird’s closing share price on 8 September prior to announcement of the Transaction.
The Transaction will deliver the funding required to advance the Ibhubesi Gas Project to commercialisation and provides Sunbird with a highly capable strategic shareholder with extensive industry experience in Africa. Sunbird is pleased to welcome Vandasia as a strategic partner and major new shareholder. The investment by Vandasia demonstrates the value proposition of the Ibhubesi Gas Project as South Africa’s largest undeveloped gas field and the advanced nature of Sunbird’s gas supply negotiations. (Source: Sunbird Energy)