Oil and gas firm Aminex said it has agreed an $8 million loan facility to provide working capital for its Tanzanian operations.

The money is being provided by a fund managed by Argo Capital Management (Cyprus) Ltd, and is set to be repaid with the proceeds of the proposed sale of its US assets before the end of the year.

The process to sell the assets has already begun.

"We are very pleased to have completed this financing which will provide valuable working capital for the company's significant projects in Tanzania," said Aminex chairman Brian Hall. "These include gas discoveries at Ntorya in the onshore Ruvuma Basin and at Kiliwani North, both of which are close to Tanzania's proposed new gas trunk line, due onstream in late 2014. A farm-out process is currently under way to introduce new partners into our Ruvuma Basin joint venture in order to accelerate activity and do justice to this large concession."