Renergen, owner and operator of South Africa's inaugural onshore production project for liquid natural gas and helium, announced yesterday that Mahlako Gas Energy's investment in the energy company is set to proceed, with all necessary conditions fulfilled.
Renergen said it was pleased to announce that following the announcement published on December 27, 2023, wherein the signature of the agreement by Mahlako Gas Energy to invest into the company's primary asset, the Virginia Gas Project, via investing in a 5.5% equity stake in Tetra4 for R550 million was announced, all conditions precedent have now been satisfied, and cash would be settled into the company's accounts as per the agreement.
All material and commercial terms of the transaction, including inter alia the put and security arrangements, had been fully disclosed.
CEO Stefano Marani said: "With another milestone achieved, we tread closer every day to bringing the Virginia Gas Project to its full potential at this time of global energy and helium scarcity."
Renergen, which is a much-watched stock, garnered a fair share of attention on social media platform X yesterday.
Market analyst Simon Brown (@SimonPB) posted: “Renergen gets all the T&Cs done and the R550million for 5.5% equity stake in Tetra4 should arrive within days. This is the easy(ish) part, getting phase 1 operational and then building phase 2 the real challenges.”
Soul (@SoulFairy3) posted, “A small step in the right direction. Still a hell of a road to go.”
The company, last year, had to release additional information on its operations after it faced online criticism, most notably from shareholder activist Albie Cilliers, who questioned the sustainability of the project and the transparency of the company.
By 2.42pm the share price was 0.25% lower at R11.84. The shares have slid 25.77% in the past three years.