Kinetiko Energy Ltd (ASX:KKO, OTC:KKOEF) has taken its interest in South African incorporated energy entity Afro Energy (Pty) Ltd to 100% after completing the acquisition of the remaining 51% interest from joint venture partner, Badimo Gas (Pty) Ltd.
This unifies the assets of both companies and enhances Kinetiko’s position in South Africa, a nation that is hungry for new energy sources such as the gas that can potentially be provided by the company.
Afro Energy is the South African incorporated entity holding the exploration rights to Kinetiko’s flagship Amersfoort Gas Project.
Unification of assets
Kinetiko now holds 100% of the issued capital of Afro Energy following completion of the acquisition and, in turn, 100% of the exploration rights to the Amersfoort Project.
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Kinetiko’s executive chairman Adam Sierakowski said: “Years of significant cooperation between the Badimo and Kinetiko teams have today achieved a unification of the South African assets.
"This merger unlocks significant value by de-risking the project, opening access to additional funding and corporate opportunities, and providing operational and development efficiencies.”
Board changes
The acquisition has been completed by the issue of 495,482,590 fully paid ordinary shares in ASX-listed Kinetiko to underlying Badimo shareholders.
In association with the acquisition, and as approved by shareholders at Kinetiko’s general meeting on June 23, 2023, two nominee directors of Badimo, Donald Ncube and Robert Bulder, will be appointed to the company’s Board of Directors effective immediately.
“We welcome on to the Kinetiko board Badimo founder and largest shareholder Don Ncube and fellow Badimo shareholder Rob Bulder who had been instrumental in securing the merger completion,” Sierakowski added.
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