Business
CMQ announces amendment to Funding Agreement and grant of Stock Options
CMQ announces amendment to Funding Agreement and grant of Stock Options
About this update from Urz3 Energy Corp.
[{"type":"text","content":"\n\n\n\nNov. 30, 2009 (Canada NewsWire Group) -- CALGARY, Nov. 30 /CNW/ -- CMQ Resources Inc. (TSXV: NV) (\"CMQ\") is pleased to announce that Matco Capital Ltd. (\"Matco\"), a control person of CMQ, has agreed to amend the funding agreement entered into on June 18, 2008, and extended on June 29, 2009 and October 30 2009, to permit CMQ to draw, and to obligate Matco to provide, up to $3,500,000 in loans (the \"Amended and Restated Funding Agreement\"). Matco has also agreed to permit CMQ to repay all amounts owing under the previously announced unsecured loan agreement, of which CMQ has currently drawn $330,000, pursuant to the terms of the Amended and Restated Funding Agreement. The Amended and Restated Funding Agreement will expire on November 30, 2010. The amounts made available under the Amended and Restated Funding Agreement will permit CMQ to meet its obligations and continue the exploration and development of its Nevada exploration properties.It is a term of the Amended and Restated Funding Agreement that Matco may, at its option, convert all or any of the amounts outstanding thereunder into common shares of CMQ on the basis of one common share for each $0.14 so converted, subject to certain conditions. The Amended and Restated Funding Agreement has been entered into conditional upon receiving all regulatory approvals and approval of the shareholders of CMQ.CMQ has not incurred any additional financial or contingent cost in obtaining the extension and the additional funding.CMQ also announces that pursuant to the terms and conditions of its Stock Option Plan, the board of directors has authorized the issuance of 215,000 incentive stock options (the \"Options\"), to certain directors, officers and consultants of the company. The Options will vest one third on each anniversary date, will expire in January 2013 and are exercisable at $0.14 per share (the most recent closing price of the underlying common shares). The issuance of options is subject to the approval of the TSX Venture Exchange.CMQ now has a total of 652,000 options outstanding. CMQ has 6,534,670 shares outstanding and accordingly the outstanding options represent approximately 10% of the number of outstanding shares. The company does not have any further dilutive instruments outstanding at the date hereof.The TSX Venture Exchange does not accept responsibility ...