International Frontier Resources Corporation and Kinjal Corporation are moving forward with a reverse takeover and a concurrent C$37 million financing to create what they aim to be Mexico's largest independent onshore gas producer. The deal, which includes significant asset acquisitions, is supported by a new US$30 million debt facility and key additions to its board of directors.
"Kinjal and IFR are excited to welcome Ignacio back to the Board of Directors and Guadalupe to the Board as we become Kinjal Gas, the largest independent onshore gas producer in Mexico," the companies said in a joint statement. The appointments of Dr. Ignacio Quesada, a former Pemex CFO, and Guadalupe Rodriguez, a global investment and governance strategist, are intended to bolster oversight for the complex transaction.
The deal is underpinned by three main financial components: the proposed reverse takeover of IFR by Kinjal, a brokered private placement of subscription receipts for gross proceeds of up to C$37 million, and a binding term sheet for a US$30 million debt facility with Latin American lender Summit Ridge Capital Partners. The funds are earmarked for the acquisition of the Misión gas field and other Mexican energy assets.
If successful, the transaction would create a new public entity named Kinjal Gas, focused on consolidating and developing natural gas assets in Mexico. Pro forma estimates project production growing from 5,103 barrels of oil equivalent per day (boe/d) at closing to 14,172 boe/d by the end of 2027, with annualized EBITDA forecast to reach C$66.5 million in the same period.
To navigate Mexico's regulatory landscape and complex cross-border transactions, the companies have added two high-profile board members. Dr. Ignacio Quesada, a former CFO of state-owned Petróleos Mexicanos (Pemex) and Partner at McKinsey & Company, rejoins the IFR board, bringing deep local energy sector and regulatory expertise.
He is joined by Guadalupe Catarina Rodriguez, Chief Strategy Officer of Talipot Holdings and a specialist in geopolitical risk and governance. Her experience is expected to be crucial in shaping the new company's strategy and ensuring institutional resilience.
The new Kinjal Gas will be anchored by the Misión Field, the largest privately operated onshore natural gas field in Mexico, which is currently producing approximately 65 million cubic feet per day (MMcf/d). The plan includes restoring production toward 120 MMcf/d.
Additional growth is expected from the Kinkan discovery in southern Mexico, which management estimates holds a 2C contingent resource of approximately 200 billion cubic feet. The combination of these assets is projected to increase the company's production nearly threefold by 2027, significantly lowering its enterprise value to production multiple from C$11,509 per boe/d to a forecast C$4,144 per boe/d. Completion of the transaction remains subject to regulatory and shareholder approvals, and trading in IFR shares remains halted.
This article is for informational purposes only and does not constitute investment advice.
