Madagascar Oil launches re-financing, reshuffles top jobs

Steam-flood financing: Madagascar Oil raises cash for Tsimiroro project, seen here in June

UK junior Madagascar Oil has announced a near-term refinancing to fund rising costs at its Tsimiroro steam-flood project onshore Madagascar and has named a new chief executive in a boardroom reshuffle.

The AIM-listed outfit said that that two of its shareholders, BMK Resources and Persistency Private Equity, had agreed to provide a $15 million bridge loan.

BMK Resources and Persistency Private Equity will also buy $30 million and $15 million worth respectively of redeemable convertible preference shares at $0.32 each.

Mirabaud Securities is to buy up to US$15 million worth of the same shares at the same rate.

The Bermuda-registered company says it will net between $45 million and $60 million after paying off the bridge loan from the re-financing, which is subject to shareholder…

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