An unknown private oil and gas company entered into a non-binding Letter of Intent to acquire International Frontier Resources Corporation in a reverse merger transaction.
Completion of the Proposed Transaction is subject to a number of conditions and other contingencies including, negotiation and execution of a definitive agreement on or before October 1, 2021, any required approvals of relevant government authorities, determination of favourable tax structuring for the transaction, TSX Venture Exchange acceptance of the transaction, satisfactory due diligence, board of director approval, shareholder consent, the funding of a $750,000 Convertible Debenture Offering, the completion of a concurrent financing in relation to the proposed transaction in an expected range of $20 million to $60 million, the purchase by International Frontier Resources Corporation all of the outstanding shares in the joint venture company, Tonalli Energia S.A.P.I. de C.V. held by its joint venture partner, Grupo IDESA S.A. de C.V, the completion of a share consolidation, lock up agreement, and other conditions typical for transactions of a similar nature. Subject to TSXV acceptance, IFR intends to complete a spin-out of IFR's nonMexican assets creating a new spin-out company holding such assets. On June 14, 2021, International Frontier Resources Corporation closed on a $750,000 convertible debenture, subject to final acceptance from the TSX Venture Exchange. As of October 22, 2021, IFR extended the letter of intent to December 1, 2021. As of April 11, 2022, IFR and buyer continue to work toward the successful completion of the transaction and have negotiated substantially all of terms of the definitive agreement. IFR has also formally notified the Mexican energy regulator of its intent to transfer ownership of its Tecolutla Block. IFR is contractually required by the regulator to submit a formal joint notification in relation to the Proposed RTO Transaction, and this submission was completed by IFR and buyer on March 14, 2022.