CALGARY, Sept. 24, 2013 /CNW/ - CMQ Resources Inc. (TSXV: NV) ("CMQ") announces that it has received a notice of intention to enforce security (the "Notice") from Matco Investments Ltd. ("Matco"). CMQ is currently indebted to Matco and its affiliates in the aggregate amount of $7,545,000 comprised of $4,000,000 represented by outstanding debentures plus accrued interest thereon of $544,000, $1,000,000 in respect of previous secured advances, $1,650,000 unsecured advances, and aggregate accrued interest on secured and unsecured advances of $351,000.
Matco had previously agreed to forbear until October 20, 2013 from enforcing its rights and remedies against CMQ in respect of substantially all amounts for which CMQ was previously indebted to Matco. The Notice indicates that upon expiry of such forbearance period Matco intends to enforce its existing security and pursue such other remedies as may be available to Matco in connection with the satisfaction and repayment of all outstanding amounts owed by CMQ.
CMQ is currently exploring alternative financing possibilities and strategic alternatives in advance of the October 20, 2013 deadline though there can be no assurances that such additional financing or any viable alternative will be available on economic terms, or at all. In the event that no such additional financing or viable alternative can be obtained CMQ expects that it will be unable to continue its operations and to operate as a going concern following enforcement by Matco of its rights in respect of CMQ's outstanding indebtedness. CMQ has established a Special Committee comprised of Robert McKenzie as Chairman and including Dr. Odin Christensen.
Matco is a private corporation controlled by Mr. Ronald Mathison, a director of CMQ. Matco is a control person of CMQ, holding approximately 49.99% of the issued and outstanding shares of CMQ. 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.
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, including with respect to the availability of alternative financing or strategic alternatives and CMQ's future ability to carry on operations. 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.
SOURCE: CMQ Resources Inc.
For further information:
Ryan Jennings, Corporate Secretary, CMQ Resources Inc., Tel: (403) 294-0101, E-mail [email protected]