Essel Group Middle East to Invest in Simba and New CEO Appointed
Date
4/21/2016 4:36:40 AM
(MENAFNEditorial)
Essel Group Middle East DMCC (“Essel Group ME” or “EGME”) and Simba Energy Inc. ("Simba") are pleased to announce that they have arranged subject to receipt of regulatory approval a private placement financing (the "Private Placement") involving the sale of 34000000 units ("Units") in Simba Energy at a price of $0.05 per Unit to Essel Group ME to raise gross proceeds of approximately $1700000. Each Unit is to be comprised of one (1) common share of Simba Energy and one-half of a share purchase warrant with each full warrant being exercisable to purchase an additional common share of the company at a price of $0.075 per share for a period of two years. Proceeds from the Private Placement will be used for working capital for Simba Energy.
Essel Group ME is a related party to Simba under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions ("MI 61-101") as Gagan Goel a Vice-Chairman and a director of Simba is the Managing Director of Essel Group ME. The Private Placement therefore constitutes a related party transaction under MI 61-101 and Simba is relying upon exemptions from the valuation and minority shareholder approval requirements of MI 61-101 available pursuant to sections 5.5(b) and 5.7(b) of MI 61-101 as Simba is not listed on a senior specified stock exchange and the Private Placement is to raise proceeds of less than $2500000. Pending receipt of TSXV approval Simba plans to close the Private Placement within 21 days from the date hereof.
Punkaj Gupta
Appointment of New CEO
Simba Energy also announces that Robert Dinning has resigned as CEO of the company effective immediately and that Mr. Punkaj Gupta has been appointed as Simba’s new CEO. Mr. Gupta who is currently a member of the Board of Directors of Simba is also the CEO of Essel Group ME. Mr. Dinning will continue to act as President and a director of Simba.
"We are very pleased to have Punkaj Gupta join our management team and take a leadership role. We believe that his appointment will assist us significantly with the development of our assets in various locations in Africa" said Robert Dinning President.
"We welcome the appointment of Punkaj Gupta as CEO of Simba. I believe that his appointment represents a step towards both Simba and Essel Group Middle East moving forward on a growth path and aligning their strategies at the grassroots level" said Gagan Goel Vice-Chairman of Simba and Managing Director of Essel Group ME.
Essel Group ME has advised that it has recently endeavoured to diversify further with investments into the hydrocarbons resource sector and that it has committed its full support to advance Simba''s African oil and gas portfolio through the exploration and appraisal phases in accordance with each governing production sharing contract ("PSC") by way of joint operating agreements on a per asset basis.
-ENDS-
For further information please contact:
Dorothy Burwell / Charles O’Brien / Benita Barretto Finsbury
+44 (0)20 7251 3801
Kriti Ladsaria Essel Group Middle East
+971 42793955
About Essel Group Middle East
Essel Group Middle East (“EGME”) is a global diversified natural resources company with a focus on the exploration development and production of oil gas and mining assets. The group targets assets in proven basins with near-term production potential and it has operations in Kenya Guinea Ghana Liberia Chad and Eritrea. EGME is backed by Essel Group a global conglomerate with a 40-year history spanning numerous industries including the media packaging entertainment infrastructure education and metals. For further information please visit www.esselgroupme.com.
About Simba Energy Inc.
Simba Energy Inc. (“Simba”) 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. For further information please visit www.simbaenergy.ca.
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