CALGARY, July 18, 2013 /CNW/ – PanTerra Resource Corp. (“PanTerra” or the “Company“) announces that it has received a commitment letter for a revised credit facility from its lender and has entered into new terms in regards to the closing of the second tranche of its previously announced sale of 60% of the Company’s Working Interest in its Carrot Creek Cardium assets of Central Alberta.
Pursuant to the terms of the commitment letter, the Company’s revolving operating demand loan will be reduced to$2,100,000. A payment of $900,000 was made on June 14, 2013, a payment of $100,000 was made on July 10, 2013, and a payment of $700,000 was made on July 17, 2013. The credit facility has a current balance of $1,400,000, and will be reduced by $50,000 monthly beginning July 26, 2013.
The Company has restructured the second tranche of its previously announced asset sale comprising of $2,299,800originally scheduled to close on July 22, 2013. PanTerra and the purchaser have agreed that the payment will be made in three separate installments and the closing date will occur on September 1, 2013 (the “Amended Closing Date“). Pursuant to the new terms, payment of $900,000 was made on July 17, 2013. A further payment of $700,000 will be made on or before July 22, 2013, and a final payment of $699,800 will be made on or before the Amended Closing Date. As security for the purchase price paid out of the second tranche before the Amended Closing Date, PanTerra will assign and novate the purchaser into the Carrot Creek property on the condition subsequent that the transaction closes on or before the Amended Closing Date.
The Company used the first installment of $900,000 received on July 17, 2013 to reduce the credit facility by $700,000 and plans to use the remaining $200,000 to reduce accounts payable.
PanTerra is a diversified junior public oil and gas company listed on the TSX Venture Exchange (“TSXV“) under the symbol “PRC”, with holdings in both conventional and unconventional projects in Western Canada that have excellent optimization and exploitation potential. Company information can be found at: www.panterraresource.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE PanTerra Resource Corp.
For further information:
Fred P. Rumak P.Geol.
President and C.E.O. at 403-261-5900
Jake Pronk P. Geol
V.P. Exploration at 403-261-5900