Renergen has announced the sale of 10% of fully owned subsidiary, Tetra4 (which is a 100% owner of its flagship Virginia Gas Project), for ~US$69mm to the South African Central Energy Fund (CEF). The funds will be used to progress the development of Phase II of the Virginia Gas Project. A non-binding term sheet has been signed following long-term discussions given that Renergen’s reserves have reached critical mass to allow CEF’s involvement. The parties have until mid-August to execute binding agreements; if binding contracts have not been executed after 141 days, Renergen has the right to renegotiate price. The transaction is subject to completion of conditions precedent including due diligence, Department of Minerals and Energy ministerial approval and National Treasury approval.
Renergen plans to offload 10% stake in the Virginia Gas Project
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