/THIS NEWS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES OR TO ANY UNITED STATES NEWS SERVICES./
CALGARY, Oct. 8, 2014 /CNW/ - 3MV Energy Corp. ("3MV" or the "Company") (TSXV: TMV) is pleased to announce that it has entered into a secured loan facility whereby it may borrow up to $10,000,000 (the "Facility") from the Invico Diversified Income Limited Partnership (the "Lender") for a term of 24 months from final advance date. The Lender is one of a number of investment funds managed by Calgary based Invico Capital Corporation ("Invico"). Invico is a registered investment fund manager and portfolio manager with offices in Calgary and Toronto overseeing in excess of $200 million of assets under management.
The funds will be available in two advances with the first advance of $5,000,000 on or before November 1, 2014 ("Tranche A") and a second advance of up to $5,000,000 on or before February 28, 2015 ("Tranche B"), subject to waiver of certain advancement conditions. In exchange for providing the Facility, the Company shall issue warrants to the Lender concurrent with the advancement of Tranche A funds entitling the Lender to purchase 10,000,000 common shares of the Company at an exercise price equal to $0.25 per share. The Company shall issue additional warrants to the Lender concurrent with the advancement of Tranche B funds entitling the Lender to purchase 7,142,857 common shares of the Company at an exercise price equal to $0.35 per Share. The issuance of Tranche A Warrants and Tranche B Warrants is subject to approval and shall be made in accordance with the rules of the TSX Venture Exchange including a hold period of 4 months from the date of issuance.
In addition, the Company shall provide security in favour of the Lender over all the real and personal property of the Company. The Company may pay up to 3% of the interest by way of quarterly share issuance at the 5 day VWAP preceding the interest payment date for the initial six months.
The Company is also pleased to announce the commencement of Phase 1 drilling which consists of 6 wells drilled in the Fiske property. 3MV plans to use Tranche A proceeds to finance Phase 2 drilling on 3MV's Fiske property and targets to have approximately 16 new oil wells drilled by the end of Q4 2014.
3MV is an oil and gas exploration and development company with assets throughout west central Saskatchewan's Viking oil play.
The securities offered have not been and will not be 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 applicable exemption from the registration requirements. This news release does not constitute an offer to sell or the solicitation of any offer to buy nor will there be any sale of these securities in any province, state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such province, state or jurisdiction.
Certain statements in this news release constitute forward-looking statements. The forward-looking statements contained in this document are based on certain key expectations and assumptions made by 3MV. Although 3MV believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because 3MV can give no assurance that they will prove to be correct.
Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the failure to obtain necessary regulatory approvals, risks associated with the oil and gas industry in general, commodity price and exchange rate fluctuations and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect 3MV's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com).
The forward-looking statements contained in this document are made as of the date hereof and 3MV undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
Neither 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 release.
SOURCE 3MV Energy Inc.For further information:
President & CEO
CFO, VP Finance