MIRAGE ENERGY CORPORATION Enters Into A Binding MOU For The Development And Funding Of Its Concho/Progreso Pipeline And Natural Gas Storage Project
PR NewswireMarch 27, 2019, 8:30 AM EDT
SAN ANTONIO, March 27, 2019 /PRNewswire/ -- MIRAGE ENERGY CORPORATION (MRGE) (the "Company") announces it has entered into a binding memorandum of understanding ("MOU") for the funding of its planned Concho/Progreso Pipeline and Natural Gas Storage facility connecting Texas to Mexico's national pipeline grid, SISTRANGAS (the "Project"). The binding MOU is with Organization Mondiale De development, a company registered in France ("OMD"). It is the Company's belief that the MOU will not become binding until OMD's "good will deposit" of $15,000,000 is paid to the Company.
The MOU sets out the terms of the proposed funding and participation in the Project. Under the MOU, Mirage proposes to sell 100% of its participation interest in the "Project" to OMD in exchange for its promise to fund the Project's estimated $1,200,000,000 cost. OMD will offer Mirage a Five (5.0%) carried equity participation interest which will be characterized as Mirage's put option interest in the Project. At the time, Mirage would exercise this put option, OMD would pay Mirage the sum of $16,000,000. The proposed Project funding would include eight tranches of $150,000,000 USD each payable at 30-day intervals commencing on, or about April 15, 2019 . The closing of the proposed transaction is subject to the execution of definitive documents. In the event the transaction fails to close due to Mirage's fault, Mirage will be required to refund the good will deposit. In the event the transaction fails to close due to OMD, Mirage will be entitled keep a portion of the deposit, not to exceed $10,000,000.
The project is designed to bring natural gas from the Banquete/Agua Dulce area to Station 19 and Los Ramones interconnection points on SISTRANGAS in Mexico coupled with access to the planned Brazil Field Natural Gas Storage Facility.