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Tuesday, July 29, 2014
Azabache Announces Convertible Loan Financing
11:27 EDT Tuesday, July 29, 2014
CALGARY, ALBERTA--(Marketwired - July 29, 2014) -
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Azabache Energy Inc. ("Azabache" or the "Company") (TSX VENTURE:AZA) is pleased to announce that it has entered into an agreement with an insider of the Corporation to complete a non-brokered financing (the "Debt Offering") of a $1,000,000 convertible, unsecured interest-bearing loan (the "Convertible Loan").
The Convertible Loan will bear interest at a rate of 8% per annum, calculated and payable together with the principal of the Convertible Loan upon the maturity date. The term of the Convertible Loan shall be one (1) year, with the Company having a right to prepayment at any time. At maturity, the Convertible Loan may be convertible into Common Shares of the Company at a conversion price of $0.16 per share.
The Debt Offering is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange Inc.
The Company intends to use the proceeds from the Debt Offering for general working capital and general corporate purposes.