(via Thenewswire.ca)
Calgary, Alberta / TheNewswire / November 25, 2015 / Zenith Energy Ltd. ("Zenith" or the "Company") (TSX VENTURE: ZEE) is pleased to announce that the Company has secured a 20,000,000 British pounds sterling (~CDN$40,250,000) unsecured loan facility (the "Loan") for general corporate purposes with a Cayman Islands based Fund (the "Lender").
The Loan can be drawn by written notice given by the Company. Subject to a satisfaction of certain conditions precedent and the approval of the Lender, a minimum sum of ?100,000 and up to a maximum sum of ?2,000,000 for each tranche can be drawn at any time from the date of the Loan agreement for a period of 18 months after such date. The Loan accrues interest at the rate of 12% per annum on the amount drawn and is payable quarterly in arrears.
Each outstanding draw down is repayable on the third anniversary of the first draw down date. Zenith may prepay the loan, in whole or in part, at any time and without penalty. A one-time fee of ?25,000 is payable in cash or by issuing the Lender common shares of Zenith Energy Ltd. The terms of the Loan are also subject the Company to the usual obligations and covenants of a facility of this nature. The transaction is subject to regulatory approval in Canada, including the approval of the TSX Venture Exchange.
Andrea Cattaneo, President and CEO of Zenith Energy Ltd. notes, "The Company is pleased to announce this credit facility as it will provide management with the capacity to accelerate the development of its assets in Azerbaijan, Italy and Argentina. This Loan will ensure that Zenith's ongoing investment program in accretive energy projects will remain on course in this current period of economic opportunity. Indeed, as an operator and low cost producer, the Company is well-positioned to take advantage of the current business climate for both oil and natural gas. Moreover, with the recent corporate developments in Azerbaijan, management is focused on a twelve (12) month plan to establish a sustainable base of production and cash flow to drive future growth."
About Zenith Energy Ltd.
Zenith focuses on the acquisition and further development of proven onshore oil and gas fields where production has declined over time, but which are capable of increased productivity following an injection of capital and optimization through its corporate engineering and technical expertise. To maximize shareholder value, Zenith targets acquisitions of production opportunities that offer strong logistics and close proximity to refineries and pipelines. Zenith's management and directors have extensive international and governmental experience and possess the technical knowledge to execute this strategy.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. More particularly and without limitation, this news release contains forward-looking statements and information concerning (i) the Company's plan and objectives, (ii) the current and future production potential of the properties, (iii) the revenue associated with production and (iv) the pricing and profitability of oil and gas production. The forward-looking statements and information are based on certain key expectations and assumptions made by Zenith, including the ability to execute its strategy and realize its growth opportunities including its ability to raise financing needed to execute its plans. Although Zenith believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward looking statements and information because Zenith can give no assurance that they will prove to be correct. By its nature, such forward-looking information is subject to various risks and uncertainties, which could cause the actual results and expectations to differ materially from the anticipated results or expectations expressed. These risks and uncertainties, include, but are not limited to, Zenith being unable to obtain additional financing or other resources to realize its growth opportunities. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date hereof, and to not use such forward-looking information for anything other than its intended purpose. Zenith undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
For further information, please contact:
Jose Ramon Lopez Portillo Andrea Cattaneo
Chairman of the Board CEO & President
Email: info@zenithenergy.org
Telephone: (587) 437-1984
Telefax: (403) 775-4474
This press release is not to be distributed to U.S. newswire services or for dissemination in the United States. Any failure to comply with this restriction may constitute a violation of U.S. securities law.
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