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Aminex Shares Surge 21.2% on APT Farm-Out Deal

Simon Mugo trader
Updated 23 Oct 2020

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Shares of Aminex plc (LON: AEX) today surged 21.2% after the company announced the completion of its farm-out deal with ARA Petroleum Tanzania Limited (APT).

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Robert Ambrose, Aminex Plc’s CEO said:”We are delighted to finally complete the farm-out and hand over operatorship of the Ruvuma PSA to APT,”

Adding:

“We are also extremely grateful to ARA Petroleum for its support over the past 12 months and look forward to the work programme progressing.”

Aminex is set to retain a 25% interest in the Ruvuma asset – which includes the Ntorya gas project and exploration areas – and APT will fund a forward programme including the drilling of the Chikumbi-1 well and a new seismic programme over at least 200 square kilometres.

APT has been supporting Aminex financially over the past 12 months as the two companies waited for regulatory approval by providing Aminex with a $3 million upfront payment and a $2 million loan.

APT is set to cover up to $35 million of Aminex’s costs for the programmes that the two companies are partners. The firm is expected to initiate a committee meeting as the new project operator to present the work schedule for the Chikumbi-1 project.

Aminex share price

Tradingview chart of Aminex share price 23102020

Aminex shares today surged 21.2% to trade at 1.60p having rallied from Thursday’s closing price of 1.32p, but later fell below Thursday’s price.

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Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading