ADM Energy PLC, a natural resources investing company, has announced that is has extended for a further 12 months its indicative MOU to enter into a strategic alliance with Trafigura Pte Ltd, a market player 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