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Tethys Petroleum agree to binding C$25.5 million deal with Olisol

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Oilfield Technology,

Tethys Petroleum Limited ('Tethys' or the 'Company') (TSX:TPL)(LSE:TPL) has announced that is has entered into a binding investment agreement (the 'Investment Agreement') with Olisol Investments Limited ('Olisol') setting out the terms and conditions upon which Olisol Petroleum Limited, a wholly-owned subsidiary of Olisol ('OPL'), has agreed to purchase 150 million new ordinary shares in Tethys (Shares) at a price of C$0.17 per Share, for total proceeds of C$25.5 million, by way of a private placement (Placing) and to commit to backstop a further equity fundraising of 50 million Shares at C$0.17 per Share (the 'Further Financing', together the 'Transaction').

On closing of the Placing, the outstanding principal and accrued but unpaid interest under the US$15 million convertible facility (Interim Facility) entered into with Olisol on November 19, 2015, will be automatically converted into Shares at a conversion price of C$0.17 per Share.

Currently, there are 336 960 387 Shares outstanding and following the Placing (150 000 000 Shares) and conversion of the Interim Facility, assuming it is fully drawn, (117 820 588 Shares) there will be 604 820 588 Shares in issue, of which Olisol will own 267 820 588 Shares or approximately 44% of the outstanding Shares. The Further Financing will result in at least a further 50 000 000 Shares being issued at C$0.17 per Share.

John Bell, Executive Chairman commented:

"We are pleased to have signed a binding agreement with Olisol for the larger private placement, following on from the recent signed loan agreement for US$15 million. This Transaction will result in a significant recapitalisation of the Company and provide much needed stability going forward."

Adapted from a press release by Louise Mulhall

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