ADM extends agreement with Trafigura

RNS Number : 3424N
ADM Energy PLC
29 January 2021
 

THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED TO CONSTITUTE INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) NO. 596/2014.  UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.

 

29 January 2021

 

ADM Energy PLC 

("ADM" or the "Company") 

 

ADM Energy extends agreement with Trafigura for conditional financing of up to $120m

 

Further to the announcement of 3 February 2020, ADM Energy PLC (AIM: ADME; BER and FSE: P4JC), a natural resources investing company, is pleased to announce that is has extended for a further 12 months its indicative MOU to enter into a strategic alliance with Trafigura Pte Ltd ("Trafigura"), a market leader in the global commodities industry.  There are no other changes to the original MOU.

 

ADM and Trafigura intend to create a strategic alliance that enables the development and financing of energy projects in Africa. Under the terms of the MOU, ADM will act as the sponsor for investment opportunities in the African energy sector ("Projects") which will be presented to Trafigura for consideration as a trading counterparty, or financing provider.

 

Trafigura will be entitled to provide ADM with conditional pre-financing of up to US$100 million for the acquisition or development of Approved Projects. It is anticipated that Trafigura may subscribe for up to US$20 million in convertible loan notes in ADM as definitive agreements and project funding for Approved Projects are agreed.

 

Osamede Okhomina, CEO of ADM Energy plc, said: "We are pleased to extend our agreement with Trafigura, which demonstrates the strength of our relationship and their belief in our growth strategy. This relationship with a multi-billion dollar industry partner gives ADM access to capital to secure and develop projects that will increase our exposure to value-accretive, high-quality assets. We are in regular discussions with Trafigura and are pursuing a number of attractive opportunities in the West African region that we believe will be prosperous for the partnership."  

 

Enquiries:

 

ADM Energy plc

+44 20 7459 4718

Osamede Okhomina, CEO


www.admenergyplc.com




Cairn Financial Advisers LLP

+44 20 7213 0880

(Nominated Adviser)


Jo Turner, James Caithie




Arden Partners plc

+44 20 7614 5900

(Lead Broker)


Paul Shackleton, Dan Gee-Summons




 

Hybridan LLP

 

+44 20 3764 2341

(Joint Broker)


Claire Louise Noyce




Oddo Seydler Bank AG

+49 69 920540

(Designated Sponsor)


Michael B. Thiriot




Luther Pendragon

+44 20 7618 9100

(Financial PR)


Harry Chathli, Alexis Gore, Joe Quinlan


 

 

About ADM Energy PLC

 

ADM Energy PLC (AIM: ADME; BER and FSE: P4JC) is a natural resources investing company with an existing asset base in Nigeria. ADM Energy holds a 9.2% profit interest in the Aje Field, part of OML 113, which covers an area of 835km² offshore Nigeria. Aje has multiple oil, gas, and gas condensate reservoirs in the Turonian, Cenomanian and Albian sandstones with five wells drilled to date.

 

ADM Energy is seeking to build on its existing asset base in Nigeria and target other investment opportunities across the West African region in the oil and gas sector with attractive risk reward profiles such as proven nature of reserves, level of historic investment, established infrastructure and route to early cash flow.

 

About Trafigura

 

Founded in 1993, Trafigura is one of the largest physical commodities trading groups in the world. Trafigura sources, stores, transports and delivers a range of raw materials (including oil and refined products and metals and minerals) to clients around the world and has recently established a power and renewables trading division.

 

The trading business is supported by industrial and financial assets, including a majority ownership of global zinc and lead producer Nyrstar which has mining, smelting and other operations located in Europe, Americas and Australia; a significant shareholding in global oil products storage and distribution company Puma Energy; global terminals, warehousing and logistics operator Impala Terminals; Trafigura's Mining Group; and Galena Asset Management with circa 850 shareholders, Trafigura is owned by its employees. 

 

Over 8,500 employees work in 48 countries around the world.  Trafigura has achieved substantial growth over recent years, growing revenue from USD12 billion in 2003 to USD147 billion in 2020.  The Group has been connecting its customers to the global economy for more than two decades, growing prosperity by advancing trade. Visit:  www.trafigura.com  

 

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
END
 
 
AGRUKUBRAWUAURR

Companies

ADM Energy (ADME)
UK 100

Latest directors dealings