VANCOUVER, BRITISH COLUMBIA — (Marketwire) — 07/26/11 — Warrior Energy N.V. (“Warrior”) (TSX VENTURE: WEN) announces that it has entered into a Credit Facility Agreement (the “Agreement”) among Canaccord Genuity Corp., in trust for John R. Hislop (the “Lender”), Warrior Oil & Gas Holdings Inc.(“Warrior Oil & Gas”), and ZNX Energy Ltd. (“ZNX”) for the amount of C$2,000,000. Warrior Oil & Gas and ZNX are each wholly-owned subsidiaries of Warrior. The facility matures on the later of ten business days after July 15, 2013 and the delivery of demand for repayment by the Lender.
Advances under the Facility bear interest at a rate of prime rate plus 2% per annum. As additional consideration to the Lender for establishing the Facility, ZNX agreed to grant to the Lender, subject to TSX Venture Exchange approval, an option to purchase certain of its properties for $3,000,000, less any gross revenues paid or allocated to ZNX until the closing date of the Option.
Pursuant to the Agreement, Warrior and its subsidiaries are required to deliver the certain debentures, indemnities and guarantees and postponements of claims as security for the facility. Warrior and the Lender are at arms length to each other. Warrior intends to repay the loan with funds from capital increases and sale of non-renewable energy assets. The loan proceeds will be used for general working capital and potential acquisitions. Closing of the transaction is subject to the completion of all closing conditions set out in the agreement and any required approvals including any consents or approvals required by the TSX Venture Exchange.
Forward Looking Statements
This release contains forward-looking statements including management–s assessments of future plans and operations, and expectations. These statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated. These risks include, but are not limited to, the risk that the conditions to complete the Loan Agreement are not met including satisfactory completion of the parties due diligence and any inability to obtain any applicable regulatory or corporate consents or approvals for the proposed facility, delays or changes in plans with respect to exploration or development projects or capital expenditures and other risks outlined in the Company–s annual and interim management discussion and analysis reports and other public filings at . The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.
Neither the TSX Venture Exchange Inc. nor its regulation service provider (as that term is defined in the policies of the TSX Venture Exchange Inc.) accepts responsibility for the adequacy or accuracy of this news release.
Contacts:
Warrior Energy N.V.
Juerg Tschofen
+41 (0)79 417 3081