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CALGARY, Nov. 30 /CNW/ - CMQ Resources Inc. (TSXV: NV) ("CMQ") is pleased to announce that Matco Capital Ltd. ("Matco"), a control person of CMQ, has agreed to amend the funding agreement entered into on June 18, 2008, and extended on June 29, 2009 and October 30 2009, to permit CMQ to draw, and to obligate Matco to provide, up to $3,500,000 in loans (the "Amended and Restated Funding Agreement"). Matco has also agreed to permit CMQ to repay all amounts owing under the previously announced unsecured loan agreement, of which CMQ has currently drawn $330,000, pursuant to the terms of the Amended and Restated Funding Agreement. The Amended and Restated Funding Agreement will expire on November 30, 2010. The amounts made available under the Amended and Restated Funding Agreement will permit CMQ to meet its obligations and continue the exploration and development of its Nevada exploration properties.
It is a term of the Amended and Restated Funding Agreement that Matco may, at its option, convert all or any of the amounts outstanding thereunder into common shares of CMQ on the basis of one common share for each $0.14 so converted, subject to certain conditions. The Amended and Restated Funding Agreement has been entered into conditional upon receiving all regulatory approvals and approval of the shareholders of CMQ.
CMQ has not incurred any additional financial or contingent cost in obtaining the extension and the additional funding.
CMQ also announces that pursuant to the terms and conditions of its Stock Option Plan, the board of directors has authorized the issuance of 215,000 incentive stock options (the "Options"), to certain directors, officers and consultants of the company. The Options will vest one third on each anniversary date, will expire in January 2013 and are exercisable at $0.14 per share (the most recent closing price of the underlying common shares). The issuance of options is subject to the approval of the TSX Venture Exchange.
CMQ now has a total of 652,000 options outstanding. CMQ has 6,534,670 shares outstanding and accordingly the outstanding options represent approximately 10% of the number of outstanding shares. The company does not have any further dilutive instruments outstanding at the date hereof.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
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", "may", "will", "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.
SOURCE CMQ Resources Inc.
For further information: For further information: please contact John Hogg, Chief Executive Officer, CMQ Resources Inc., Tel: (775) 778-3693, E-mail email@example.com