Aminex (LON: AEX) shares have jumped Friday on news it reached an agreement with the Tanzania Petroleum Development Corporation (TPDC) to pay outstanding monies owed for past gas sales to the TPDC.
The news has resulted in a net cash inflow to the company of approximately $1.85 million.
Aminex and the TPDC have been involved in productive negotiations over the last few months, ending in an agreed settlement.
The settlement between the parties involves the netting off of past gas sales of $6.77 million.
The Kiliwani North Joint Venture (KNJV) was owed $8.34 million by the TPDC ($3.50 million to Aminex). Of this amount, the KNJV has agreed to abandon its claim for the interest of $1.57 million under the Kiliwani North Gas Sales Agreement to resolve the matter and secure payment by the TPDC.Â
The TPDC must make a payment of $4.37 million to Aminex within 30 days of the settlement agreement. After allocating the money to relevant parties, Aminex will retain approximately $1.85 million.
Speaking on the settlement, Charlie Santos, Executive Chairman of Aminex, commented: “This settlement reflects the commitment of the TPDC to work constructively with its partners and the determination of the Tanzanian authorities to establish conditions that will spur further investment into the Tanzanian energy sector. We would like to thank the TPDC and the Tanzanian authorities for their efforts to bring this matter to a satisfactory close.”
The news has seen the company's shares climb over 115 to 0.75p as we head into the last 30 minutes of the London session.
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