Nyati Mauritius, through its indirect wholly owned subsidiary Nyati Energy Resources Botswana, holds exploration licenses in Botswana. Zulu Energy has acquired its interests based on management’s belief in the potential for a coalbed methane project in the lease area.
In connection with the share acquisition, Zulu has issued 30 million shares of its common stock and agreed to pay an aggregate of C$3 million in cash and to issue a five-year warrant to purchase 15 million shares of its common stock. Zulu must raise a minimum of C$5 million in private financing or a portion of the transaction may be rescinded.
Paul Stroud, president and CEO of Zulu Energy, said that he is pleased to have concluded the share acquisitions, and that he is making plans to commence exploratory work in Botswana in early 2008. Mr Stroud noted that additional financing will be required to meet the company’s funding commitments in the share exchange and to pursue the project work in Botswana.
