Corcel plc has agreed an unsecured convertible loan notes for up to a potential £10 million over three years for its oil and gas interests in Angola and Brazil and “operations elsewhere”.
ACCELERATE
Investment company Extraction Srl, whose chairman is a major shareholder in Corcel, will lend £1m this month, £1m in January 2024 with a potential further £8m over the agreed period.
The loan proceeds are convertible into new ordinary shares at a fixed price of £0.008, a 79.8% premium, and bear 12% interest per year.
Corcel executive chairman Antoine Karam, who owns 45% of Extraction Srl, said that the funding was “demonstrative of the changes occurring in the business both operationally in Angola and financially”.
“With this instrument in place, the company now has a cost-effective long-term facility it can access without having to consider more dilutive and expensive sources of capital on offer.
“With this facility now available to help accelerate our activities, we now await initial results from the drilling of our first oil well in the Kwanza Basin, Angola.”