December 22, 2010 / 2:26 PM / in 7 years

UPDATE 1-Canada's Sonde to sell stake in Trinidad block to Niko

* To get $87.5 mln, including $12 mln given as guarantee

* To reclaim extra $20 mln security deposit

Dec 22 (Reuters) - Sonde Resources Corp SOQ.TO agreed to sell its interest in an oil block off the east coast of Trinidad and Tobago to Niko Resources Ltd NKO.TO for $87.5 million, to fund its projects in Western Canada and Northern Africa.

Calgary, Alberta-based Sonde said the deal includes the assumption of its liability up to $12 million, provided as performance guarantee for the Block 5(c) license.

Sonde said the deal is expected to close by Feb. 28

Niko agreed to pay a refundable cash deposit of $20 million to Sonde after the rights of first refusal with respect to the block is waived, or $2 million break fee if it is not waived, Sonde said.

Sonde will be entitled to reclaim an additional $20 million security deposit with BG International Ltd, which is currently on Sonde’s balance sheet as restricted cash, bringing the total cash available from the deal to about $95 million.

Sonde shares, which have gained 2 percent since naming a new chief executive in October, closed at C$3.05 on Tuesday on the Toronto Stock Exchange. (Reporting by Isheeta Sanghi in Bangalore; Editing by Don Sebastian)

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