Astara Energy Corp. entered into an agreement to acquire 100% stake in Blackspur Oil Corp. from Calima Energy Limited for a cash consideration of CAD 75 million prior to customary completion adjustments for net debt.

Astara Energy Corp. entered into an agreement to acquire 100% stake in Blackspur Oil Corp. from Calima Energy Limited (ASX:CE1) for CAD 75 million on January 5, 2024.

A Notice of Meeting will be issued shortly, which is subject to obtaining shareholder approval pursuant to Listing Rule 11.2 at an Extraordinary General Meeting expected to be held on 15 February 2024. The Blackspur Sale is anticipated to close 10 days post the meeting, however, no later than 30 March 2024. Astara has provided a CAD 5 million escrow deposit to secure its obligations pursuant to the definitive agreement in respect of the Blackspur Sale, which shall be executed via a Share Purchase Agreement.The SPA provides for a break fee of CAD 1.75 million in favor of Astara which may become payable by the Company, inter alia, in the event shareholders do not approve the Blackspur Sale or a superior acquisition proposal is announced or recommended in relation to Blackspur.

National Bank Financial Inc. is acting as financial advisor with respect to the Blackspur Sale.