President Energy is pleased to announce that it has reached agreement in principle with the International Finance Corporation (IFC), the private sector arm of the World Bank Group, for a proposed investment of up to £12.5 million (approximately US$20 million), comprising:
- a subscription of 37.5 million new ordinary shares at 25 pence per share to raise £9.375 million (approximately US$15 million) (the “Placement”) which is anticipated to close by the end of November.
- a further subscription which has been agreed in principle to raise £3.125 million (approximately US$5 million) (at a price per share to be agreed at the time of the subscription) ("Additional Placement") which is available until the end of 2014.
The closing of the Placement is subject to certain conditions, including approval by IFC’s Board of Directors following completion of a required thirty day public disclosure period, and the finalisation and execution of definitive agreements. On completion of the Placement, IFC would hold 12.2 % of the Company's enlarged issued share capital. The closing of the Additional Placement is subject to further conditions, including the investment of an equivalent amount by Peter Levine.
IFC have already undertaken a thorough review and due diligence of President Energy’s work and processes, including site visits, a detailed technical review and environmental, social and financial analyses. President Energy would be required to continue to meet on an on-going basis IFC’s environmental, social and safety standards. In connection with the investment, IFC will have certain rights, including the right to nominate a board representative.
The proceeds of the IFC funding will be focussed on the Company’s 2014 Paraguay drilling programme in the Pirity Block and will promote the long-term development of the company and its investments in Paraguay.
Peter Levine, Chairman, President Energy commented:
“We are very pleased to have reached an agreement in principle with IFC, part of the World Bank Group. IFC’s proposed involvement is a vote of confidence in President Energy’s work in Paraguay, management objectives, and prospects. It is also importantly a strong signal of support for the country of Paraguay. We welcome the expertise and valuable advice IFC possesses. We look forward to working with the IFC to continue to enhance shareholder value and to continue implementation of environmental and social best practice in Paraguay”.
