The Sunday News
TORONTO — Southern Africa-focused explorer Giyani Gold on Friday last week said it had struck an all-scrip deal to acquire a fully permitted crude oil storage and dry bulk cargo port development in Turkey, the Ceyhan project.The TSX-V- and JSE-listed firm simultaneously announced that it would buy Sumo Coal, a cash-flow generating coal operator in South Africa.
The Investment Industry Regulatory Organisation of Canada halted trading in the stock last Friday pending the announcement.
“Giyani has assembled a unique package of energy assets that will mould our company into a major player into a major player in the oil services and energy sector. We have delivered on our strategy of acquiring a cash-flow generating asset, which will elevate the profile of our company and remove exploration risk moving forward,’’ Giyani executive chairperson Duane Parnham said.
“The energy sector is strong and we anticipate that as the sector continues to strengthen our shareholders will be rewarded based on the superior projects Giyani is acquiring and the team we have assembled to progress them,” he added.
Parnham was also associated with several other companies, including Temex Resources, Forsys Metals, Angus Mining.
Giyani said it would acquire the assets by securing all of the issued and outstanding shares of both Sumo Coal, and Horizon Enerji, which owns the Ceyhan project. The transaction would be structured as a reverse takeover, Giyani said.
In connection with the transaction, Giyani expected to undertake a debt and/or equity financing of up to $25 million, with a minimum of $15 million of this financing closing concurrently with the transaction, and the balance coming after the transaction was complete.
Giyani also said it was mulling consolidating its shares on a basis that had yet to be determined.
“With this transaction, Giyani and its Turkish partners are creating a Canadian mid-stream company which will have access to a very exciting high growth mid-stream oil and gas opportunity in a strategically important location at the upstream of European markets,” Giyani associate and consultant to the parties Bertan Atalay said.
The associated dry bulk cargo port facility would allow the new company to take advantage of the increasing demand for energy import port facilities in a high-growth Turkish market.
Giyani’s TSX-V-listed stock closed at C$0,36 apiece last Friday, having gained 33 percent in the last six months. — miningweekly.com
