PR REV We drilllllllllRegent Ventures Ltd (C:REV)
Shares Issued 76,152,255
Last Close 6/16/2010
.07
Friday June 18 2010 - News Release
Mr. Richard Wilson reports
COMBINED DEBT AND EQUITY FINANCING
Regent Ventures Ltd. has entered into a loan agreement with two arm's-length individuals from Langley, B.C., whereby the lenders have agreed to loan the company $500,000 (U.S.) primarily to finance the drilling program for the first well on the oil and gas lease interest the company holds in northern Louisiana.
The loan agreement provides that the loan shall be for a term of one year and bear simple interest at 8 per cent per year, payable monthly. The loan shall be partially secured against two million shares of EuroGas Inc. held by the company that will be placed in escrow. In consideration of the risk associated with the loan, the company will pay the lenders a bonus consisting of 991,428 shares and 1,982,857 warrants in the capital of the company. Each warrant will entitle the lender to acquire one additional share in the capital of the company at a price of seven cents per share for a period of one year.
The company has agreed to pay a finder's fee in cash and shares with respect to the loan transaction.
The loan agreement, bonus and finder's fee are all subject to acceptance for filing by the TSX Venture Exchange.
Private placement
In conjunction with the loan, the company has agreed with the lenders to a $100,000 private placement of up to 1,666,666 units of its securities at a price of six cents per unit, with each unit consisting of one flow-through common share and one non-transferable share purchase warrant, with each such warrant entitling the holder to purchase one additional non-flow-through common share of the company at a price of 15 cents per share for one year. Should the company's common shares trade at or above a trading price of 20 cents per share for 20 consecutive trading days, the company will have the right to issue a written notice that the warrants will expire 30 days from providing such notice.
The proceeds from the private placement will be used for exploration of the company's Red Mountain property.