CALGARY, ALBERTA--(Marketwired - Dec. 30, 2014) -
NOT FOR DISTRIBUTION TO THE UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Azabache Energy Inc. ("Azabache" or the "Company") (TSX VENTURE:AZA) announces that it has entered into agreements with various arm's length and non-arm's length parties (collectively, the "Lenders") to the Corporation to complete a senior unsecured interest-bearing debt financing in the principal amount of up to an aggregate of $2,311,250 (the "Loan"). The Loan will be issued to the Lenders at a discount of 6.98%, resulting in net proceeds to the Company of $2,150,000.
The Loan will bear interest at a rate of 4% per annum, calculated and payable together with the principal of the Loan upon the maturity date. The term of the Loan shall be eighteen (18) months from the effective date of the Loan, with the Company having a right to prepayment at any time. At maturity, the Loan together with all accrued interest will become due and payable by the Company.
In consideration for the Lenders advancing the Loan to the Company, the Company will pay to the Lenders up to an aggregate of Nine Million Two Hundred Forty Five Thousand (9,245,000) common shares in the capital of the Corporation (the "Bonus Shares"). Such Bonus Shares to be issued to the Lenders on a pro rata basis, at a rate of four (4) common shares with a deemed value of Cdn. $0.05 per common share for each dollar of the Loan.