Universal Power will pay Telpon C$850,000 cash and will issue 1.5 million shares and 1.5 million share purchase warrants of the company upon completion of due diligence and TSX Venture Exchange approval.
According to Universal Power, the letter of intent will establish a strategic partnership designed to exclusively position the company with ownership in key Namibian oil and gas assets while allowing Kunene to access foreign capital to fuel growth. The partnership co-operates with proposed Namibian Black Economic Empowerment initiatives through equity and project ownership in the company.
Barry Swanson, CEO of Universal Power, said: This acquisition is a major step for our company and shareholders as we move closer to our goal of becoming a successful global energy exploration and production company.
The purchase of Kunene immediately gives us a carried interest in a potential multi-billion barrel oil and gas project set to commence drilling next month plus two offshore oil and gas concession blocks in the prolific Orange Basin. Furthermore, with our partner the Namibian BEE, we will work closely on developing future oil and gas projects in the country.
