San Leon Secures Mart Financing

AIM-listed San Leon Energy has secured the funds to complete the Mart Resources transaction that it announced on January 22, it said March 2. The deadline for payment into an escrow account had been extended twice, on February 18 and again on February 25. Completion of the deal is subject to necessary approvals.

The funds total about C$89.26mn ($66.4mn) plus about $4.5mn in transaction costs. Progress on the other elements of the proposed transaction will be announced "in due course," it said in a stock exchange announcement.

San Leon has provided Mart with confirmation from its investors that they will fund the agreed escrow account by 5pm Calgary time on 8 March 2016, and a further extension to the agreed funding timing has been agreed between parties to facilitate this.

San Leon CEO Oisin Fanning said he was "delighted to have secured the funds to enable this company-changing transaction to complete, subject to necessary approvals."

San Leon stands to increase its African interest when the acquisition of Mart Resources is completed. It will gain a 9.72% economic interest in the onshore OML 18 block in Nigeria. Mart Resources acquired the stake in March 2015 along with a consortium of other buyers. 

William Powell