/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES/
CALGARY, Dec. 15 /CNW/ - CMQ Resources Inc. ("CMQ") (TSXV:NV) is announcing that it will not be proceeding with the
private placement financing and debt restructuring that were previously
announced on September 1, 2010. Since the date of the initial
announcement of such private placement and debt restructuring, CMQ has
been unable to obtain receipt of all necessary regulatory approvals in
a manner satisfactory to CMQ and Matco Capital Ltd. ("Matco"), CMQ's principal creditor.
As a result of the failure of this proposal, CMQ remains in default
under its existing funding agreement with Matco and does not have any
source of capital to continue its operations. CMQ is currently indebted
to Matco for approximately $2.7 million, including unpaid interest and
as at September 30, 2010 had additional current liabilities of
approximately $400,000 with current assets of only $43,000. Matco has
the contractual right, as at the date hereof, to enforce its security
over all of CMQ's assets, including all of CMQ's exploration
CMQ is attempting to negotiate a funding and forbearance agreement with
Matco in respect of such default. There can be no assurances that any
such funding or forbearance agreement will be concluded. If a funding
and forbearance agreement is reached, the terms may be punitive to CMQ
and its shareholders.
CMQ's directors have not made a filing under the Companies' Creditors
Arrangement Act ("CCAA") because the prospect of obtaining financing to
fund a CCAA process is remote given the exploratory nature of CMQ's
business and the uncertain value of its assets.
CMQ currently has 6,534,670 Common Shares issued and outstanding.
The TSXV does not accept responsibility for the adequacy or accuracy of
This press release contains certain forward-looking statements and
forward-looking information (collectively referred to herein as "forward-looking statements") within the meaning of Canadian securities laws. All statements other
than statements of historical fact are forward-looking statements.
Forward-looking statements typically contain statements with words such
as "anticipate", "believe", "plan", "continuous", "estimate", "expect",
"intend", "may", "will", "shall", "project", "would", "should", or
similar words suggesting future outcomes
Undue reliance should not be placed on forward-looking statements, which
are inherently uncertain, are based on estimates and assumptions, and
are subject to known and unknown risks and uncertainties (both general
and specific) that contribute to the possibility that the future events
or circumstances contemplated by the forward-looking statements will
not occur. There can be no assurance that the plans, intentions or
expectations upon which forward-looking statements are based will in
fact be realized. Actual results will differ, and the difference may be
material and adverse to CMQ and shareholders. Forward-looking
statements are based on management's current beliefs as well as
assumptions made by, and information currently available to,
management. Though management considers these assumptions to be
reasonable based on information currently available to it, they may
prove to be incorrect. By their very nature, forward-looking statements
involve inherent risks and uncertainties, both general and specific,
and risks that forward-looking statements will not be achieved. The
forward-looking statements contained in this press release are made as
of the date hereof and CMQ does not undertake any obligation to update
publicly or to revise any of the included forward-looking statements,
except as required by applicable law. The forward-looking statements
contained herein are expressly qualified by this cautionary statement.
This press release is not an offer to sell securities in the United
States. Securities may not be offered or sold in the United States in
the absence of registration or an exemption from registration.
SOURCE CMQ Resources Inc.
For further information: For further information:
on CMQ visit CMQ website at (www.cmqresources.com) or please contact: Ryan Jennings, CMQ Resources Inc., telephone number (403) 294-6496.