Kinetiko Energy Ltd (ASX:KKO) has been granted a trading halt by the ASX ahead of the release of an announcement in relation to project funding and capital raising.
The halt will remain in place until the start of regular trading on Friday, July 2, or until an announcement is released to the market, whichever occurs earliest.
Securing 100% of Amersfoot
The company has strengthened its position in energy-hungry South Africa by securing 100% of the Amersfoot Project, a near-term commercial production gas asset.
Kinetiko executed a binding terms sheet with Badimo Gas Pty Ltd to acquire the remaining 51% of Afro Energy Pty Ltd, making it the sole owner of all exploration rights and production approvals.
This move streamlines the exploration and development of nearly 7,000 square kilometres of the geologically and infrastructure rich land position which hosts a 4.9Tcf (2C) resource.
“A major milestone”
Executive chairman Adam Sierakowski said: “This union between the historic joint venture partners represents the achievement of a major milestone for the derisking of the development of what is potentially the largest onshore gas project in South Africa.
“Years of significant cooperation between the Badimo and Kinetiko teams have enabled this acquisition to be realised and will result in delivering substantial shareholder value.”