CALGARY, Aug. 2, 2012 /CNW/ -
Alston Energy Inc. (TSX-V: ALO) ("Alston") is pleased to announce a reduction in the amount of outstanding debt, an extension to the maturity date and other changes to a subordinate secured loan agreement with a private lender ("Lender").
Alston (as successor in title to
CanRock Energy Corp. and Petro-Sands Resources Ltd.) is a party to a Purchase and Sale Agreement dated February 24, 2011 and a Secured Loan Agreement dated February 24, 2011. Alston and Lender have agreed to amend certain terms and conditions of the Secured Loan Agreement and recognize certain key elements of the Purchase and Sale Agreement as follows:
Firstly; Alston and the Lender agree that the outstanding balance owing to Lender prior to the Amending Agreement is $2,927,697.97 ("Outstanding Loan Amount") which is due and to be paid in full by August 22, 2012 ("Maturity Date") under the original terms of the Secured Loan Agreement.
Secondly; the parties have agreed to reduce the Outstanding Loan Amount by $350,000 to $2,577,697.97, effective August 22, 2012, in recognition of certain key provisions in the Purchase and Sale Agreement and to extend the Maturity Date for repayment of the outstand balance of the Secured Loan, subject to the following terms and conditions:
- Alston will make a principal payment of $1,000,000 on or before August 22, 2012 resulting in an outstanding loan balance as at August 22, 2012 of $1,577,697.97;
- Alston shall make further principal and interest payments of $275,000 each beginning on March 15, 2013 and every 90 days thereafter until the full amount of principal and interest associated with the amended Secured Loan is paid.
- The outstanding loan amount of $1,577,696.97 shall attract interest of 8% until fully paid.
The Secured Loan Agreement is held subordinate to a previously announced revolving production loan facility in the amount of Cdn. $9,000,000 and a revolving acquisition loan facility of Cdn. $2,500,000 with the Alberta Treasury Branches.
About Alston Energy Inc.:
Alston is a junior oil and gas company, incorporated in Alberta and listed on the TSXV. Its primary exploration focus is in north-Central and east-Central Alberta. More information about Alston can be found on SEDAR under the company's profile at
www.sedar.com.
This press release is not an offer of the securities for sale in the United States. The securities have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an exemption from registration. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful.
Investors are cautioned that, except as disclosed in the management information circular, filing statement or other continuous disclosure document to be prepared in connection with the proposed Transaction, any information released or received with respect to the proposed Transaction may not be accurate or complete and should not be relied upon.
The TSX Venture Exchange Inc. has in no way passed upon the merits of the proposed Transaction and has neither approved nor disapproved the contents of this press release.
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 press release.
For further information:
Alston Energy Inc.
Don K. Umbach, President & CEO
Telephone: (403) 265-2770 Ext.222
Email: don.umbach@alstonenergy.ca
Bruce Eckert, VP Operations & COO
Telephone: (403) 265-2770 ext. 230
Email: beckert@alstonenergy.ca
Troy Winsor, VP Business Development
Telephone: 1-800-663-8072
Email: troyw1@telus.net
