12:56 PM EDT, 03/15/2024 (MT Newswires) -- Greenhawk Resources Inc. ( VGGOF ) has purchased a $2.7-million debenture from CG International Petroleum (CGIP) Corp.

In connection with the Debenture, CGIP and Greenhawk have executed a letter of intent accepted by CGIP on March 14, 2024, whereby the company will receive a farm-in option for up to twelve oil and gas exploration and development wells in the Doba Basin, Chad.

The wells are within the DOC and DOD blocks which are held by a subsidiary of CGIP through an Exclusive Exploration Authorization (EEA).

Greenhawk has lent $2.7 million to CGIP in the form of a debenture with a one-year term and a 10% interest rate, due at maturity.

To exercise the first farm-in right right, which will provide Greenhawk the rights to 50% of the free cash-flow from four production wells in the Doba Basin, Greenhawk must: cancel the debenture with the principal plus interest owing considered as a cash consideration to CGIP towards Greenhawk earning its rights under the First Farm-In; make an additional cash payment of $4.3 million to CGIP; and issue 50 million common shares of the company to CGIP. Greenhawk shall be entitled, in its sole discretion, to make a $10 million cash payment to CGIP in lieu of the 50 million common shares issuance.

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