Sintana Energy Inc. (TSXV:SEI) entered into a definitive agreement to acquire 49% stake in Giraffe Energy Investments (Pty) Ltd. from Crown Energy (Pty) Ltd. for $2 million on April 24, 2024. Under the terms of agreement, the Acquisition is structured as an initial purchase of 49% of the issued and outstanding shares of Giraffe from Crown Energy which, prior to the Acquisition was the owner of 100% of the issued and outstanding shares of Giraffe, for cash consideration of $2 million. Further, Sintana retains an option to increase its ownership up to 67% of Giraffe anytime over the 5 years following closing based on the shares issued and outstanding at the time of the option exercise for an additional cash payment at the time of exercise of $1 million. The Company proposes to fund the cash consideration from resources on hand. The Acquisition provides Sintana with an attractive entry into a high impact license with significant upside. In conjunction with the Acquisition, an 8% interest in Giraffe?s common equity will be contributed to a community trust.

The Acquisition remains subject to the satisfaction of various closing conditions and the receipt of all applicable approvals, including, without limitation, the approval of the TSX Venture Exchange.