June 15, 2016, Vancouver, British Columbia – Simba Energy Inc. (the “Company” or “Simba”) (TSX Venture: SMB) (Frankfurt: GDA) (CQX: SMBZF) has closed the non-brokered private placement previously announced on April 18 and May 4, 2016 to raise gross proceeds of $2,150,000 (the “Private Placement”).
The Company issued 43,000,000 units (“Units”) at a price of $0.05 per Unit, each Unit consisting of one common share of the Company (a “Share”) and one-half of one common share purchase warrant, with each whole warrant (a “Warrant”) entitling the holder to purchase common share of the Company (a “Warrant Share”) at an exercise price of $0.075 per Warrant Share for a period of two years. The Company plans to use the proceeds of the Private Placement to retire existing debt and for general working capital purposes. All securities issued pursuant to the Private Placement are subject to a four month hold period expiring on October 1, 2016. Essel Group Middle East DMCC (“Essel Group”, a company controlled by Gagan Goel, a director of the Company and the CEO of which is Punkaj Gupta, also a director of the Company) and Charles de Chezelles, a director of the Company (collectively, the “Insiders”), subscribed for a total of 38,000,000 Units in the Private Placement.
At the annual general meeting of the Company held on May 31, 2016, the disinterested shareholders of the Company passed an ordinary resolution approving the issuance of common shares of the Company to Gagan Goel or Essel Group on the exercise of share purchase warrants held by either of them in such circumstance where Mr. Goel and Essel Group will collectively hold 20% or more of the issued and outstanding common shares of the Company as a result of such exercise and thereby result in a change of control under TSX Venture Exchange policies. The Company relied upon exemptions from the valuation and minority shareholder approval requirements of Multilateral Instrument 61-101 contained in section 5.5(b) and 5.7(1)(b), respectively, with respect to the issuance of the Units to the Insiders.
Block 2A Kenya Update:
The Company is also pleased to report that following Simba’s Managing Director- Operations, Hassan Hassan’s successful meetings with elders and community leaders in Wajir, Kenya, the parties have come to an understanding regarding allocation of work and services matters on Block 2A. We reiterate our commitment to carry out works that meet best practice regarding work on its Block 2A concession in Kenya. The survey work on Block 2A commenced on Sunday June 12, 2016, and will be followed in the next ten days by the cutting of the seismic lines, in order that seismic data acquisition can occur. Simba and its partner Essel Group Middle East plan to complete the 2D Seismic Data Acquisition and Processing program in the next 60 days with a view to targeting final locations for drilling later in 2016. “We are pleased with the co-operation being extended to the Company by the local communities. We are keen to complete our work in the field in a respectful and thoughtful manner.” said Punkaj Gupta, CEO.
About Essel Group Middle East:
Essel Group ME is part of Essel Group India, a business conglomerate that has over the past three decades achieved diverse and prominent growth across media, entertainment, packaging, infrastructure, precious metals, and energy and technology sectors. Essel Group has recently endeavored to diversify further with investments into the hydrocarbon resource sector and has committed full support to advance Simba’s African O & G portfolio through the exploration and appraisal phases in accordance to each governing PSC by way of joint operating agreements on a per asset basis.
About Simba Energy:
Simba Energy Inc. provides investors with well positioned exposure to oil and gas exploration in key areas of Africa with active onshore production sharing contracts (“PSCs”) in Kenya and Guinea and PSCs under continuing negotiation in Chad, Liberia and Ghana. Simba’s mission is to focus on onshore oil and gas potential in areas that are under-developed or not previously exploited.
ON BEHALF OF THE BOARD
For further information, contact: Mark Sommer at +1-604-629-9647 or Toll Free: 1‐855‐777‐4622, or firstname.lastname@example.org . Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This release includes certain statements that may be deemed to be “forward-looking statements”. All statements in this release, other than the statements of historical facts, that address events or developments that the Company expects to occur, are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “plans”, “could” or “should” occur. Forward looking information in this news release includes, without limitation, all statements regarding the use of proceeds. Although the Company believes that the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward-looking statements. Factors that cause the actual results to differ materially from those in forward-looking statements include: results of exploration and development activities, regulatory changes, defects in title, availability of materials and equipment, timeliness in government approvals, continued availability of capital and financing and general economic, market and business conditions. The Company cautions the foregoing list of important factors is not exhaustive. Investors and others who base themselves on the Company’s forward-looking statements should carefully consider the above factors as well as the uncertainties they represent and the risk they entail. The Company believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct. Please see the public filings of the Company at www.sedar.com for further information.