Scirocco Energy said it has received confirmation from the Tanzania Revenue Authority (TRA) of the assessed tax liability of around £150,000 related to the sale of its Ruvuma asset.
The TRA issued a Tax Clearance Certificate to Scirocco on 3 August 2023, which represents a major milestone towards final completion said the company.
Scirocco added it will now write to the Tanzanian Minister for Energy to obtain the final approval of the transfer of the licence interest to APT, the buyer.
On receipt of this approval, all conditions precedent to the transaction will be satisfied with the deal set to be completed by the amended long stop date of 31 August 2023.
At this point, Scirocco expects to receive the balance of the completion payment of US$2.5 million net.
Following completion, Scirocco will be entitled to receive a series of contingent payments as Ruvuma progresses worth up to US$13 million.
Tom Reynolds, Scirocco’s chief executive, said: “We are now working with our counterparty APT to deliver the final approval from the Minister of Energy in order to complete the transaction as soon as possible.
“Completion of the Ruvuma sale will mark Scirocco's transition from an investor in cash-consuming natural resource assets to an investor in cash-generative sustainable energy assets.
“The expected cash payments from the sale significantly exceed Scirocco's current market capitalisation."
Scirocco’s plan now is to pivot towards green energy opportunities.