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Simba Energy Inks Memorandum of Understanding to Farmout in Kenya

By: MT Newswires
Posted: 5/13/2013 1:52:00 PM
Referenced Stocks:

Simba Energy Inc. (SMB.V) has signed a memorandum of understanding with Ajax Exploration Ltd., a privately-owned oil and gas company, to farmout a 66% interest and operatorship of Block 2A, onshore Kenya.

The memorandum provides that upon execution of the farmout agreement, Ajax is to advance to Simba a loan of the sum of US$1.3 million to cover some back costs incurred by Simba prior to the effective date of the farmout agreement and to concurrently issue a 2 year convertible loan note to evidence the loan.

SMB was up nearly 7% to 8 cents, slightly above 52-week low $0.055.