Anglo African Oil & Gas PLC (LON:AAOG) has announced new terms for the divestment of its Congo assets to Zenith Energy Ltd (LON:ZEN).
The top-line deal value reduces to £800,000 from £1mln, but, the consideration will now be paid entirely in cash, whereas the original deal saw AAOG received £500,000 cash and £500,000 of Zenith shares. The group said the cash will be paid to AAOG in ten equal instalments.
READ: AAOG to receive another £150,000 from Forum
Originally, the Zenith transaction was accompanied by certain other measures including a loan from Zenith and a put-and-call option agreement.
AAOG has subsequently stuck alternative funding facilities with Forum Energy and, consequently, it expects it will have sufficient working capital.
It noted that the newly amended arrangements will be subject to the approval of shareholders.
Last week, AAOG announced that Forum had agreed to provide £150,000 of interim finance for the company.
AAOG is in the process of becoming a cash shell for future investment, in January agreed a funding deal with Forum which at that time saw the company receive £250,000.