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Georox Resources Inc. Announces Amended Credit Facility and Forbearance Agreement and Funding for Red Earth Waterflood
Georox Resources Inc. Announces Amended Credit Facility and Forbearance Agreement and Fund...
About this update from Prospera Energy Inc.
[{"type":"text","content":"\n\n\n\nGeorox Resources Inc. Announces Amended Credit Facility and Forbearance Agreement and Funding for Red Earth Waterflood\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\n\n\n\n\n\n\nCanada NewsWire\nKELOWNA, BC, Sept. 8, 2017\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, Sept. 8, 2017 /CNW/ - \n\nLender Arrangements\n\nGeorox Resources Inc. (\"Georox\" or the \"Corporation\") (TSXV:GXR) announces that it has entered into an amended credit facility and forbearance agreement with Tallinn Capital Mezzanine Limited Partnership (\"Tallinn\" or the \"Lender\").  Under the terms of the forbearance agreement, Tallinn has agreed to forbear from exercising enforcement rights and remedies in respect of its credit facilities with Georox until July 31, 2018, subject to customary conditions. As a term of the forbearance arrangement, Georox has provided Tallinn with a quitclaim of its properties which may be used by Tallinn in the event that Georox defaults under the credit arrangements, including the forbearance agreement, provided that if at maturity, the petroleum and natural gas assets of Georox have a fair market value greater than 90% of the then outstanding amount owing to Tallinn, the forbearance period and use of the quitclaim will be extended until January 31, 2019 if Georox shall go into default under the amended credit facility or forbearance agreement.\n\nThe amended commitment letter with Tallinn provides for a new second credit facility in the amount of $600,000 to be used to fund the Red Earth waterflood project.  \n\nRed Earth Waterflood\n\nThe Corporation has obtained the requisite regulatory approvals and initiated the waterflood project with the goal of significantly improving the production and net back economics of its Red Earth properties. Operations with respect to institution of waterflood are expected to be completed by late October, 2017 and the full impact of the benefits of the waterflood are expected to be realized around Q2, 2018....