Tethys Petroleum has agreed to extend the previously agreed exclusivity period with Kazakh investor Olisol Investments until December 7.
Tethys entered into a non-binding letter of intent with Olisol on 9 November, with Olisol offering to make up to C$40million available to Tethys, comprising C$15mln of interim debt financing, as well as a further C$25.5million injection of capital via shares.
Tethys entered into an interim convertible financing facility on November 19, 2015, of up to US$15million with Olisol. Subject to approval from the Toronto Stock Exchange, the interim financing facility is convertible into Tethys ordinary shares at C$0.17 per share.
A condition to the first draw-down under the interim financing facility is that Alexander Abramov, a designee of Olisol, and William Wells of Pope Asset Management, a 19.1% shareholder of the company, be appointed to the Tethys board, which has now happened.