(MENAFN- ProactiveInvestors - N.America) Tethys Petroleum (TSE:TPL LON:TPL) has revealed renewed uncertainty over its financial position as a result to delays receiving funds from OilSol a Kazakh investment group.
OliSol in late 2015 agreed to recapitalise Tethys in a deal that would ultimately see the investor take up to a 44% stake in the Toronto and London listed company.
Via an interim financing arrangement some US$15mln was supposed to be released to Tethys however the company has told investors that money transfer has been held up due to currency controls in Kazakhstan amid a devaluation of the Kazakh Tenge.
A January 22 deadline was set by Tethys for a US$2mln transfer but this was not met.
Tethys after the market close on Friday told investors that it continues to believe that the transactions with Olisol is in the best interests of the company but it has had to reopen active talks with alternative parties.
It is the latest setback for the junior oil and gas group. It has previously agreed in principal a number of funding deals which have subsequently not proceeded.
'Should the overdue funds under the interim facility [with OliSol] arrive in a timely manner however Tethys will continue to work with Olisol to close the wider transaction' Tethys said in a statement.
It added: 'The company currently does not have sufficient funding to meet its requirements over the next few months and therefore if the transactions with Olisol do not proceed for any reason the company's ability to continue as a going concern will be dependent on the company being successful in securing alternative funding.'
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