International Petroleum: Secures 2m USD Loan Facility
International Petroleum Limited, an oil and gas exploration and production company with assets in Russia and Kazakhstan, is pleased to announce that it has secured an additional US$2 million convertible loan facility from Varesona Participation Corporation, an entity controlled by Frank Timis, a non-executive director, to fund exploration expenditure and working capital. The Loan Facility is additional to the loans entered into by the Company in August and September 2012.
Pursuant to the terms of the Loan Facility, the Company will have access to US$2 million and the amount drawn down under the Loan Facility (“Loan Amount”) will attract interest at the rate of 5% per annum and will be repayable by the Company 12 months from the date of the agreement (unless extended by the parties) (“Repayment Date”).
If the Loan Amount is not repaid by the Repayment Date, the Loan Amount will be converted, subject to the receipt of all necessary shareholder approvals, into shares at a deemed issue price equal to A$0.15 per share. If all necessary shareholder approvals for the conversion of the Loan Amount into shares are not obtained, the Company must satisfy the Loan Amount in cash and not shares.
To allow the Company the future flexibility to determine whether to satisfy the Loan Amount in cash or shares, the Company may seek all necessary shareholder approvals for the conversion of the Loan Amount into shares prior to the Repayment Date.
Funds drawn down from the Loan Facility will be applied towards exploration expenditure and general working capital.