CGX Energy Inc. said the maturation date for a US$19 million convertible loan it took for Guyana projects has been moved.
The loan outstanding to Frontera Energy Corp., was previously announced on April 16, 2021 and May 28, 2021. With original maturation date of June 30, 2022, this was extended to July 31, 2022, and then subsequently to September 30, 2022 to allow for the completion of the Agreement, CGX said.
The loan extension is subject to final approval by the Toronto Stock Exchange venture exchange (TSXV).
The funds are for the Berbice Deepwater Port and other budgeted expenses.
CGX recently related to the public that “certain delays” pushed back its expected completion of the Port. This has not found favour with the Guyana government.
While the Port was expected to be completed in the fourth quarter of 2022, CGX said this is now unlikely.
A revised schedule of completion of the Port is being discussed with the contractor, CGX said, with an update expected to be provided to all stakeholders involved “in due course.”