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(Alliance News) - Mast Energy Developments PLC on Monday said it has received "sufficient" verbal and written confirmation from joint venture partner Proventure Holdings (UK) Ltd, and other funders that the initial interim payment of GBP2 million will be paid between this coming Friday and Wednesday next week, subject to signature of definitive agreements.
Proventure failed to make an initial interim payment of GBP2.0 million to the joint venture special purpose vehicle by Thursday last week. The original deadline for payment was November 10. Proventure also must pay the balance of the investment of around GBP3.9 million.
Mast Energy on Friday gave Proventure seven days to settle the initial interim payment. If it did not, Mast said it would consider all available options including terminating the joint venture agreement.
Back in October, Mast signed a binding JV agreement with Proventure. It had previously finalised a JV deal with a consortium led by Seira Capital Ltd, but the long-stop date was revised after Seira's principal was involved in a serious road accident.
Kibo Energy PLC, the parent of Mast, said on Monday it remains "very conscious" of the numerous delays by Proventure in providing the funding.
Kibo said it supported Mast in its decision to provide an extension to Proventure to satisfy its obligations under the JV agreement, while at the same time exploring alternative funding options. Kibo owns 47% of Mast.
In London, Mast shares were up 33% at 0.70 pence on Monday morning. The stock has lost 76% of its value over the past 12 months.
Shares in Kibo were unchanged at 2.00 rand cents in Johannesburg. They were down 11% at 0.040 pence in London.
By Artwell Dlamini, Alliance News reporter
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