Range Resources has signed a Memorandum of Understanding with Beijing Sibo Investment Management, which could unlock up to $35 million of funding.
As part of the deal Sibo will provide a minimum of $20 million, and a maximum of $35 million, in cash to subscribe for shares of the company at a price of $0.01 per share. The new agreement will help Range fund its drilling and exploration activities in Trinidad and help the company repay outstanding debt to Lind Asset Management.
The definitive share subscription agreement is expected to be executed by May 31, 2015. Upon signing of the agreement, Range will issue an initial tranche of approximately 500 million shares. Shareholder and regulatory approvals will be required to release the second tranche of shares and the remaining tranche will be released following a shareholder meeting prior to November 30, 2015.
In February 2015 Lind issued a statutory demand to Range Resources for the repayment of approximately $7.2 million. Range’s new deal follows the recent termination of a previously proposed funding agreement with Core Capital.
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