Aminex PLC (LON:AEX) has told investors it is now set to complete its pivotal farm-out transaction as the Tanzanian authorities have now issued a Tax Clearance Certificate, following the payment of a capital gains tax bill.
It means that Aminex and new partner ARA Petroleum have satisfied all requirements for the government to approve the transfer of a 50% interest in the Ruvuma PSA.
"This is a major milestone. With the receipt of the Tax Clearance Certificate from the TRA and with the onward submission to the TPDC, Aminex has now accomplished all of the conditions within our control in order to complete the Ruvuma farm-out," Robert Ambrose, Aminex chief executive said in a statement.
Earlier this month, the company announced that new partner ARA would advance a US$2mln loan to pay a tax in Tanzania so that the farm-out transaction can complete.
Once the transaction completes, Aminex and ARA will be clear to advance work programmes on the Ruvuma project and see the Ntorya discovery move towards development.
The farm-out deal will see Aminex carried for US$35mln of its share of costs as Ntorya is advanced into development.
It will effectively mean that Aminex is fully-carried through to material gas production is established at the Ntorya gas field.
Aminex will be due US$5mln in cash upon completion of the transaction plus US$1.97mln of cash over six monthly instalments to reimburse back costs.
A loan agreement was put in place between Aminex and ARA, to be paid from the farm-out consideration, and to date, around US$2.33mln has been drawn down.