Letho Signs Letter of Intent With Stream Oil & Gas Ltd (LET)
Letho Resources Corp.
TSX VENTURE : LET
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July 09, 2014 16:30 ET
Letho Signs Letter of Intent With Stream Oil & Gas Ltd.
VANCOUVER, BRITISH COLUMBIA--(Marketwired - July 9, 2014) -Letho Resources Corp. ("Letho") (TSX VENTURE:LET) is pleased to announce that it has signed a Letter of Intent ("LOI") with Stream Oil & Gas Ltd. ("Stream") whereby Letho has agreed to loan Stream up to CAD $5,000,000 (the "Loan"), which loan will be supported by the issuance of a convertible debenture to Letho. Subject to TSX Venture Exchange approval and the entry into a definitive agreement, Letho will advance the loan in two separate tranches, a first tranche of CAD $2.0 million ("First Loan") and the second tranche of CAD $3.0 million ("Second Loan"), on such dates as set out in the definitive agreement.
Under the terms of the convertible debenture set out in the definitive agreement, and are expected to include Stream's option to convert the Letho debenture into common shares of Stream. Stream may also prepay the debenture, in whole or in part, at any time without notice, bonus or penalty.
About Letho
Letho recently entered into a letter of intent to acquire certain Namibian Onshore Oil and Gas Licenses (the "Namibian Licenses") from Incan Energy Inc. ("Incan"). Incan currently owns a 35% interest in six Namibian Licenses located within the Owambo Basin and a 33% interest in one additional Namibian License located in the Waterberg Basin.
The Namibian Licenses are comprised of six onshore licenses located within the Owambo Basin of Namibia with a total area of nearly 37,000 km2, and one onshore license located in the Waterberg Basin with a total area of nearly 10,000 km2.
Although the Owambo Basin is largely unexplored, the opportunity lies therein that large concession acreage is available for exploration and that there is an active petroleum system present. Historically, oil was discovered in the Etosha well 5-1A (Block 1814), and other the hydrocarbon indicators present and verified in the basin.
The Waterberg Basin is unexplored, but has live gas shows in several shallow boreholes. The opportunity exist to further exploration and define this smaller type African Rift Basin in better geological terms, with potentially finding a deeper and larger gas target that could be exploited for the generation of electricity. To learn more about us, please visit our website at: www.lethoresources.com
Contact Information
Letho Resources Inc.
Rob Hall
President, CEO and Director
(604) 999-5554