Key Capital Corporation has announced the acquisition of 65% interest in Geoglobal Resources. Key Capital will obtain several board seats along with the investment.
Geoglobal has experienced “serious difficulties” in the past several years. Key Capital has been working closely with GeoGlobal to address the underlying issues as to “avoid seemingly inevitable total corporate demise”. The announcement indicated that the extensive collaboration had improved GeoGlobal’s situation.
Key Capital intends on raising $15 million to shore up the capital structure of GeoGlobal and is working with peer to peer funding platform Red Rock Assets to raise the funds. Red Rock Assets is a debt crowdfunding platform that targets the mining and energy industry. The report stated that Red Rock projects offer a 7.5% annual interest rate with a pro-rata profit share of projects.
GeoGlobal listed assets where they held various stakes including, but not limited to:
- Offshore Krishna Godavari Block
- Blocks in Cambay Basin
- Tarapur Block
- Sanand/Miroli Block
- Andleshwar Block
The GeoGlobal offer on Red Rock Assets indicated an anticipated profit share of between 18%- 20% per annum.
GeoGlobal Resources is led by Chairman and CEO Jean Paul Roy who has in excess of 30 years of geological and geophysical experience in oil & gas basins worldwide as he has worked on projects throughout India, North and South America, Europe, the Middle East, the former Soviet Union and South East Asia.
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