AGR Energy invests in Frontier Resources

2 minute read
17 March 2015

On 17 March 2015, Frontier Resources International PLC (AIM: FRI) entered into a conditional subscription agreement with AGR Energy Limited No. II. Under the terms of the agreement, Frontier agreed to issue 170,000,000 new ordinary shares of 1p each to AGR Energy at a subscription price of one penny per new share and to grant AGR Energy 53,250,000 new warrants to subscribe for new ordinary shares at any time in the next five years for new ordinary shares at the subscription price. The gross proceeds immediately on completion of the subscription will amount to £1.7 million.

In addition, AGR Energy agreed to provide an interim secured short term loan facility of US$200,000 to Frontier to provide additional working capital prior to completion of the subscription while the conditions of the subscription agreement are met.

Frontier is focused on onshore oil and gas exploration in the Middle East and Southern Africa where the company currently has three exploration projects in Oman, Namibia and Zambia.

AGR Energy is owned by the Assaubayev family. The Assaubayev family are long-term investors in natural resources and metals and mining, and have a track record of investment and support of enterprises, particularly in Central Asia and other emerging markets.

The firm advised AGR Energy on the negotiation of this agreement with a team that included Charles Bond and Sefton Collett.

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