TSX SYMBOLS: ZAR; ZAR.DB.A
CALGARY, Alberta, Nov. 02, 2018 (GLOBE NEWSWIRE) — Zargon Oil & Gas Ltd. (“Zargon” or the “Company”) announces that it has entered into a financing agreement for $3.5 million (USD) term debt with private investment funds advised by JGB Capital Management, LP. The proceeds of the financing will be utilized for low risk oil exploitation capital projects and general corporate purposes. The loan is secured by all U.S. assets of Zargon. The loan bears interest at 11% and principal repayments commence July 1, 2019 at $50,000 (USD) per month until September 1, 2019 and on October 1, 2019 principal repayments will be $75,000 (USD) per month until maturity at April 1, 2020 when the balance of the principal plus an original issue discount of $145,833 (USD) is payable. If certain US production or cash flow minimums are not achieved repayment could be accelerated. Athena Capital Markets Ltd. acted as the financial advisor on this transaction.