VANCOUVER, May 5 /CNW/ - Network Exploration Ltd. (the "Company") (TSX.V: NET) announces that, subject to all necessary regulatory approvals, it has entered into a loan arrangement pursuant to which it will borrow $250,000 (the "Loan") from an arm's-length third party (the "Lender"). The loan is unsecured, bears no interest and is evidenced by a promissory note (the "Note") dated May 5, 2010 (the "Note Date").
In accordance with the terms of the Note, the Lender will lend $250,000 to be repaid within the lesser of 90 days following the Note Date and 5 working days of the TSXV's approval of the Company's next private placement. The Company intends to raise additional capital by way of private placement, following the consolidation of the Company's shares. On April 29th, 2010, the Company announced its intention to consolidate its shares on a one (1) new share for six (6) old shares, subject to shareholder and regulatory approval. The Company intends to pay the Loan out of the proceeds of its next private placement. If a private placement is not approved within 90 days from May 5, 2010, the Loan will become immediately due and payable. In consideration for the Loan, the Company will pay the Lender a bonus of 12% of the Loan amount ($30,000) payable in post-consolidated common shares in the capital of the Company ("Bonus Shares"). These Bonus Shares will be issued to the Lender upon successful consolidation of the Company's common stock ("Stock") and will be valued at the weighted average closing price of the Company's shares first five days of trading on a consolidated basis. The Bonus Shares will be subject to a four month hold period from the date they are issued. Funds from the Loan will be used for working capital.
A cash commission equivalent to 7.5% of the principal sum of the Loan ($18,750) will be paid to PI Financial Corporation upon approval of the Loan by the TSX Venture Exchange.
Network Exploration Ltd. is a mineral exploration company committed to building shareholder value through the acquisition of base and precious metal properties in North and South America.
ON BEHALF OF THE BOARD OF DIRECTORS
Neither the 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.
Forward-Looking Statements: This news release has been prepared by management. This document contains certain forward looking statements which involve known and unknown risks, delays, and uncertainties not under the Company's control which may cause actual results, performance or achievements of the Company to be materially different from the results, performance or achievements implied by these forward looking statements.
THE TSX VENTURE EXCHANGE HAS NOT YET REVIEWED AND DOES NOT TAKE RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS NEWS RELEASE. This news release contains certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time with the British Columbia Securities Commission and the United States Securities & Exchange Commission.
SOURCE Network Exploration Ltd.
For further information: For further information: please contact the office at (604) 638-7363 or toll-free at 1-866-637-5138, or visit www.networkexploration.com