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Aminex extends deadline for Tanzania farm-out for final time

"Aminex remains hopeful and looks to the Tanzanian authorities for a prompt resolution as the window of opportunity to complete the farm-out is clearly closing," said Robert Ambrose.

Aminex PLC - Aminex extends deadline for Tanzania farm-out for final time

Aminex PLC (LON:AEX) has agreed the ninth extension to the long stop date for its farm-out transaction in Tanzania.

The new deadline is set to October 15, moved from September 30.

It added that it has been advised by ARA Petroleum that the date will not be extended again and therefore the transaction will be cancelled if government approval is not forthcoming before the new deadline.

Over the past 12-months Aminex has borrowed US$3mln as an advance and a further US$2mln loan – against US$5mln of cash proceeds due in the farm-out deal.

The company noted that the US$3mln loan was extended to enable Aminex to pay capital gains tax on the farm-out transaction, and it is due to be repaid by June 30 2021.

Additionally, ARA has advanced US$1.97mln that would have been due as interim costs for the joint venture.

"Despite the company paying US$2.2mln in capital gains tax and APT paying over US$330,000 in stamp duty to the Tanzania Revenue Authority in May 2020, government approval for the farm-out has still not been forthcoming,” said Robert Ambrose, Aminex chief executive.

“Nevertheless, Aminex remains hopeful and looks to the Tanzanian authorities for a prompt resolution as the window of opportunity to complete the farm-out is clearly closing.  

“Meanwhile, we remain very grateful for ARA's continued support."

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Price: 1.01 GBX

LSE:AEX
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