gas28 Mar 2014 21:15
In recognition of being made an exclusive supplier, Gasol has agreed to make a payment of US$2,500,000 to AIOG as an advance on the first US$2,500,000 of introduction fees arising under the Partnership. The advance, less any introduction fees agreed between the parties, is repayable at the end of the Partnership term. If no projects are entered into, the advance shall be repaid together with interest at 15% per annum. African Gas Development Corporation ("AGDC"), Gasol's largest shareholder and a longer term lender to Gasol in the past few years, has guaranteed AIOG's obligations to repay the advance under the terms of the Partnership, and has provided Gasol with a share pledge over Gasol shares that AGDC owns in support of this guarantee. Mr EJL Cooper is a director and the major beneficial shareholder of AIOG as well as being a director and, along with his family, beneficially interested in a trust that owns AGDC.
The provision of the advance to AIOG and the associated guarantee from AGDC is a related party transaction pursuant to Rule 13 of the AIM Rules for Companies. The Directors of Gasol consider, having consulted with Panmure Gordon (UK) Limited, Gasol's Nominated Adviser, that the terms of the transaction are fair and reasonable insofar as shareholders are concerned.
Commenting on the agreement Gasol's Chief Operating Officer, Alan Buxton, said: "We welcome this Strategic Partnership Agreement with AIOG, which we believe can provide us with gas to power opportunities for the beneficiation of iron ore within our key West African market."