Renergen Limited has announced the successful completion of a significant investment deal with Mahlako Gas Energy Proprietary Limited. The transaction, which was first announced on December 27, 2023, marks a pivotal moment for Renergen as it moves closer to realizing the full potential of its primary asset, the Virginia Gas Project.
Fulfillment of Conditions Precedent
In a statement released today, Renergen confirmed that all conditions precedent related to the investment agreement have been satisfied. The agreement entails Mahlako Gas Energy Proprietary Limited acquiring a 5.5% equity stake in Tetra4 Proprietary Limited, a subsidiary of Renergen responsible for managing the Virginia Gas Project. The investment amounts to a substantial R550 million (approximately A$ 43.4 million), which will be settled in cash as per the terms of the agreement.
Significance of the Transaction
CEO Stefano Marani expressed his satisfaction with the successful completion of the transaction, highlighting its importance in the context of global energy and helium scarcity. Marani emphasized the role of the Virginia Gas Project in addressing these challenges and reiterated Renergen’s commitment to unlocking its full potential.
Quote from CEO Stefano Marani
“With another milestone achieved, we tread closer every day to bringing the Virginia Gas Project to its full potential at this time of global energy and helium scarcity,” said CEO Stefano Marani.
Transparent Disclosure
Renergen assured stakeholders that all material commercial terms of the transaction, including put and security arrangements, have been fully disclosed. This commitment to transparency underscores the company’s dedication to maintaining trust and confidence among investors and other stakeholders.
Next Steps
With the completion of this investment deal, Renergen is poised to accelerate the development of the Virginia Gas Project. The influx of capital from Mahlako Gas Energy Proprietary Limited will support Renergen’s efforts to leverage its unique position in the energy market and drive sustainable growth in the coming years.
This website uses cookies.
