TSXV:ART.H - Post by User
Comment by
justin_a_lyesseon Aug 29, 2011 9:00am
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Post# 18988774
RE: NR
RE: NR | Vast Enters Into Financing Agreement With Niko Resources for Qara Dagh Block. Funds to Be Used to Deepen the Current Well and to Facilitate Operations Going Forward. |
29 Aug 2011 08:00 ET
Marketwire Canada Vast Exploration Inc. ("Vast" or the "Company") (TSX VENTURE:VST) announces that it has entered into an Encumbrance for Financing Agreement ("Financing Agreement") with Nikoresources (Kurdistan) Ltd. ("Niko") in regard to the Qara Dagh Block in Kurdistan. Under the terms of the Financing Agreement Niko will provide financing of US$9,000,000 to be used by Vast to pay outstanding amounts to Niko under a joint operating agreement as well as to fund future expenses related to the deepening of the Qara Dagh well to 4,150 meters. Niko will, additionally, provide financing to Vast in regard to 34.78% of Vast's share of the cost of all operations going forward. In return, Vast will have the obligation, in the event that a commercial discovery is made and produced, to pay Niko an amount equal to the net proceeds of sale associated with an undivided 12% interest in the Qara Dagh Block. Such financing arrangements have been put in place pending Kurdistan Regional Government approval of the sale by Vast to Niko of an undivided 12% interest in the Qara Dagh Block. The Financing Agreement with Niko remains subject to receipt of approval, if necessary, of the TSX Venture Exchange. |