Sunbird Energy has successfully executed an agreement with White Swan Nominees for a secured loan facility of up to A$5 million. The loan facility, arranged by Sunbird’s corporate advisors Cygnet Capital, is being supported by key shareholders and management of the Southern African gas explorer and developer.
Sunbird’s managing director, Will Barker, said that “the funding demonstrates the continued strong support of major shareholders for Sunbird and our plans to bring the Ibhubesi gas project to commercialisation in 2014.
“Having executed the Eskom gas supply MoU in late December 2013, this funding facility provides us with the capital required to mature the engineering work program while negotiating the gas sales agreement that underpins the development of the Ibhubesi gas project and unlocks the value of our significant reserves base.”
The loan facility agreement provides for the drawdown by tranches as the working capital requirements of the company demand the use of such funds and the aggregate loan drawn down in tranche payments is repayable within twelve months of the first drawdown of funds.
Security on the Loan Facility is subject to a grant of waiver by ASX of Listing Rule 10.1 due to White Swan being a related party within the definitions prescribed by the Corporations Act 2001 and the ASX Listing Rules. An application to ASX for such waiver has been submitted and the Company has confidence that it shall be granted on usual terms.