VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 3, 2012) - Taipan Resources Inc. ("Taipan" or the "Company") (TSX VENTURE:TPN) is pleased to provide an update to its proposed acquisition of Lion Petroleum Corp. ("Lion") as previously announced in the Company's press releases dated May 17th, May 31th, June 14th and June 20th 2012 (the "Transaction").
Lion has reached an agreement in principle (the "Agreement") with NewAge (African Global Energy) Limited ("NewAge"), whereby NewAge will farm-in for a 50% interest in Block 2B onshore Kenya. Pursuant to the terms of the Agreement, NewAge has agreed to fund 50% of the costs of the proposed work program on Block 2B and provide 50% of the US$5,875,000 bank guarantee required by the Government of Kenya.
NewAge is an independent oil and gas exploration and development company with a regional focus on, and operations in, sub-Saharan Africa and Kurdistan. NewAge currently holds licences for 13 onshore and offshore blocks in Congo-Brazzaville, Ethiopia, South Africa and Kurdistan with gross probable reserves and contingent resources of 52 mmboe, prospective resources of over 700 mmboe and significant cash resources.
Mr. Charles Watson commented, "The farm-in with NewAge provides additional industry validation as to the prospectivity of Block 2B in addition to a partner with significant technical and financial capacity and extensive experience operating in sub-Saharan Africa."
In addition, Taipan has amended the price of the units (the "Units") being offered pursuant to the previously announced Private Placement to $0.50 per Unit. Each Unit will now be comprised of one common share and one common share purchase warrant with each warrant being exercisable into an additional common share for 60 months following the closing of the Private Placement at an exercise price of $0.60.
Taipan is in the process of amending the comprehensive filing statement describing the Transaction to include the NewAge farm-in, which will be filed with the TSX Venture Exchange (the "Exchange") and on SEDAR and shall be available for review.
Lion is an oil and gas exploration company with interests in 9.7 million gross oil and gas exploration acres onshore Kenya known as Block 1 and Block 2B. Further details on Block 1 and Block 2B are contained in Taipan's news release issued on May 17th, 2012. Approval of the Transaction by the Lion shareholders has been received and Taipan has concluded its due diligence investigation of Lion. Closing of the Transaction is subject to completion of the amended Filing Statement and clearance by the Exchange, receipt of Exchange approval to the Transaction and completion of the Private Placement.
Subject to the approval of the TSX Venture Exchange, the Transaction is expected to close on or before July 16th, 2012.
About Taipan Resources Inc.
Taipan Resources is actively pursuing the acquisition of international oil and gas exploration and development assets. The company is focused on acquisitions in its core geographic regions: Africa, the Middle East and South America, where opportunities remain for junior oil and gas companies to access large-scale oil and gas resources with significant exploration and development upside. Taipan is traded on the TSX Venture Exchange under the symbol TPN.
The statements contained in this release that are not historical facts are forward-looking statements, which involve risks and uncertainties that could cause actual results to differ materially from the targeted results. The Company relies upon litigation protection for forward looking statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.