Roxi, the Kazakhstan-focused oil and gas company, has agreed to cancel future royalty payments to investors from its BNG licence as part of a shares deal.
Under the cancellation agreement, Canamens and SS4 agree to cancel and terminate in full their interests in the BNG royalty in consideration of Roxi issuing to CL 46.6 million new ordinary shares fully paid representing 5% of the enlarged Roxi issued ordinary share capital.
Roxi acquired its interest in the BNG Contract Area in 2008 as part of Roxi’s acquisition of 59% of operator Eragon.
Chairman Clive Carver, said: “This is an excellent deal for Roxi. On completion, we have removed a future uncapped liability, which may have affected the company’s ability to secure traditional debt funding and replaced it with a supportive institutional shareholder.”