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Georox Resources Announces Consolidated and Restructured Credit Facility
Georox Resources Announces Consolidated and Restructured Credit Facility Georox Re...
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[{"type":"text","content":"\n\n\n\nGeorox Resources Announces Consolidated and Restructured Credit Facility\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prntac{\nTEXT-ALIGN: CENTER\n}\n.prntaj{\nTEXT-ALIGN: JUSTIFY\n}\n\n\n\n\n\n\nGeorox Resources Announces Consolidated and Restructured Credit Facility\nCanada NewsWire\nKELOWNA, BC, Feb. 19, 2016\n\n\n\n/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/\n\n\n\nKELOWNA, BC, Feb. 19, 2016 /CNW/ - Mr. Burkhard Franz, President and CEO of Georox Resources Inc. (\"Georox\" or the \"Corporation\") (GXR: TSX-V; OF6A:FRA) wishes to announce developments with respect to the Corporation's financial affairs. \n\nCredit Facility Restructuring\n\nGeorox is pleased to announce that it has entered into an agreement to restructure and consolidate its credit facilities and will no longer be dealing with its primary banker.  Tallinn Capital, Georox' mezzanine financier, has agreed to take over and consolidate Georox' credit facility of an aggregate of approximately $4.5 million. The credit facility will be non-revolving for a fixed term to April 30, 2018, requiring principal repayments of $25,000 per month, increasing to higher principal repayments depending on timing and a consistent increase in the WTI oil price during the term of the facility.  In connection with the restructured credit facility, Georox will pay Tallinn certain fixed and variable fees and issue to Tallinn 1,000,000 Georox non-transferable common purchase warrants, exercisable at price of $0.05 per warrant for a term of two years.  Tallinn will surrender warrants previously issued to it in June 2015 in connection with its original renewed credit facility. \n\nGeorox believes that this restructured credit facility will leave Georox with free cash flow, after debt service and other costs, such that it will be able to initiate operations on its properties with a view to improving production and financial netbacks to the Corporation.\n\nAbout Georox\n\nThe Corporation currently produces approximately 140 boepd of which 75% is light oil, 24% is...