LONDON (ShareCast) - (Sharecast News) - Natural resources investment company ADM Energy has extended its indicative memorandum of understanding to enter into a strategic alliance with Trafigura for a further 12 months, it announced on Friday.
The AIM-traded firm said itself and Trafigura intended to create a strategic alliance that would enable the development and financing of energy projects in Africa.

Under the terms of the memorandum, ADM would act as the sponsor for investment opportunities in the African energy sector, which would be presented to Trafigura for consideration as a trading counterparty, or financing provider.

Trafigura would be entitled to provide ADM with conditional pre-financing of up to $100m for the acquisition or development of approved projects.

It was expected that Trafigura could subscribe for up to $20m in convertible loan notes in ADM as definitive agreements and project funding for approved projects were agreed.

"We are pleased to extend our agreement with Trafigura, which demonstrates the strength of our relationship and their belief in our growth strategy," said chief executive officer Osamede Okhomina.

"This relationship with a multi-billion dollar industry partner gives ADM access to capital to secure and develop projects that will increase our exposure to value-accretive, high-quality assets.

"We are in regular discussions with Trafigura and are pursuing a number of attractive opportunities in the West African region that we believe will be prosperous for the partnership."

At 1143 GMT, shares in aDM Energy were up 0.98% at 5.15p.

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