/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES/
CALGARY, June 19, 2012 /CNW/ - Emerald Bay Energy Inc. (TSX Venture:
EBY) (the "Corporation" or "Emerald Bay") reports that it has entered into a loan agreement (the "Loan
Agreement") with an arm's length lender (the "Lender") in the principal
amount of $1,500,000 (the "Loan"). The Loan will bear interest at a
rate of 10% per annum, compounded monthly, with a term ending August
The proceeds of the Loan will be used primarily to fully repay its
current lending arrangement with remaining funds being used for general
working capital. In addition to industry standard security, the Loan
Agreement is also secured by a promissory note and security over the
oil and gas assets of the Corporation.
In consideration of the Loan, the Corporation has agreed to issue to the
Lender 5,000,000 common share purchase warrants ("Warrants"). Each Warrant shall be exercisable into one common share in the
capital of the Corporation ("Common Share") at a price of $0.10 per Common Share on or before August 15, 2013.
The Common Shares issuable upon exercise of the Warrants will be subject
to a four month hold period. The Loan Agreement and issuance of the
Warrants are subject to the acceptance of the TSX Venture Exchange.
About Emerald Bay
Emerald Bay Energy Inc., based in Calgary, is a junior oil and gas
producer with production properties in Western Canada and South Texas.
The common shares of Emerald Bay trade on the TSX Venture Exchange
under the symbol "EBY". Please visit our website at www.emeraldbayenergy.com
If you would like to receive press releases via email please contact email@example.com. Please specify "Emerald Bay press releases" in the subject line.
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 Emerald Bay Energy Inc.
For further information:
Emerald Bay Energy Inc.
Shelby D. Beattie, President
CHF Investor Relations
Robin Cook, Senior Account Manager
(416) 868-1079 x228