Shumba Energy Ltd (BSM:SHUMBA) agreed to acquire 75% interest in Morupule South Project from Hodges Resources Limited on May 31, 2017. Shumba Energy Ltd (BSM:SHUMBA) reached an agreement to acquire 75% interest in Morupule South Project from Hodges Resources Limited for $2.9 million on September 19, 2017. Pursuant to the terms of agreement, Shumba Energy will pay $1.4 million upon regulatory approval to Hodges Resources. The remaining $1.5 million will be payable on first anniversary from that date on which mining commences. Hodges Resources will also retain a gross sales royalty of 1% of the sale revenue generated from the sale of coal from the Morupule South Project to Hodges Resources. Shumba Energy will also pay $0.07 million on the first business day immediately following the signing of the agreement. The consideration is payable in cash. The transaction is subject to completion of due diligence by Shumba Energy, approval from the relevant regulatory authorities in Botswana and approval from shareholders of Shumba Energy. The shareholder meeting is scheduled on November 24, 2017. The transaction is unconditionally approved by the Competition Authority of Botswana. As of November 24, 2017, the transaction is approved by the shareholders of Shumba Energy. International Financial Services Limited acted as financial advisor while Imara Capital Securities acted as broker to Shumba Energy. Shumba Energy Ltd (BSM:SHUMBA) cancelled the acquisition of 75% interest in Morupule South Project from Hodges Resources Limited on May 31, 2018