South Africa’s Central Energy Fund plans to buy a 10 percent stake in Renergen’s Virginia LNG and helium development, as part of a deal revealed on Monday.
In that regard, the duo signed a non-binding term sheet under which CEF would buy 10 percent in Renergen’s unit Tetra4, the operator of the Virginia gas project for about $69 million, according to a Renergen statement.
“The parties have 141 days to execute binding agreements and following completion, Renergen has the right to renegotiate price,” it said.
The agreement between the two firms follows the strategic partnership Renergen recently announced with Canadian mining company Ivanhoe Mines.
Under that deal, Ivanhoe Mines could acquire a controlling stake in Renergen.
This new deal will help Renergen to progress the second stage of the Virginia gas project, as it aims to start the first phase in April.
“To sign CEF and Ivanhoe Mines in the space of two weeks as major investors and strategic partners, highlights the significant growth of the company and the critical role Virginia will play in the future supply of clean energy as well as in-demand helium,” said Stefano Marani, CEO of Renergen.