Despite the best efforts of both Energem and FirstAfrica to complete the due diligence process by June 6, 2006 this has not been possible. However at the EGM held yesterday the board announced that the Independent Directors had agreed with Energem that the option to acquire Energem Chad will be extended to expire at 10.00 am on July 21, 2006 to give Energem and FirstAfrica the opportunity to complete the due diligence to the satisfaction of the Independent Directors and to complete the Chad Vend-in. Energem and the Independent Directors have also agreed that the contract to acquire Energem Chad will be entered into subject to the approval of the Independent Shareholders at an EGM that would be called in due course (even if such approval would not be required pursuant to the requirements of the City Code). As the option now expires on July 21, 2006 the due diligence must be satisfactorily completed and a circular posted to shareholders by July 5, 2006 latest.
The resolution to grant the board authority to issue the Chad Vend-in Shares was duly passed at yesterday's EGM. However as a result of the extension agreement between Energem and FirstAfrica, shares will only be issued in relation to the Chad Vend-in following the approval of Independent Shareholders, in addition to the completion of due diligence and satisfaction of the other terms of the option agreement.
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