CALGARY, Nov. 20 /CNW/ - NORTHERN SUN EXPLORATION COMPANY INC. (the
"Company") announces that, subject to regulatory approval, it has reached an
agreement (the "Agreement") with Quest Capital Corp. ("Quest) to provide a
$2,650,000 credit facility (the "Facility") to the Company. The Company will
use the Facility proceeds to fund the remainder of the Company's exploration
program for 2007 on its lands in Alberta and Saskatchewan.
The Facility provides that, subject to certain conditions precedent,
Quest will loan $2,650,000 to the Company. The Facility bears interest from
and after November 20, 2007 at a rate of 12% per annum, compounded monthly
(effective annual rate of 12.68%), payable monthly commencing November 30,
2007. The Facility must be paid on the earlier of November 30, 2008, any
change of control of the Company, or the occurrence of an Event of Default
more particularly set out in the Agreement.
All common shares issued as consideration for the Facility are also
subject to regulatory approval. As consideration for the Facility, the Company
shall make a non-refundable payment to Quest of Cdn. $300,000, payable in the
form of 1,500,000 common shares in the capital stock of the Company at a
deemed price of $0.20 per share, subject to a maximum hold period of four
months from the date of issuance ("Bonus Shares").
Chris Cooper, the Company's President & CEO commented, "our recent
successful oil and gas well at Worsley does not have the production history to
warrant the lending value from a traditional lending institution, so we are
pleased to enter into an agreement with Quest that will result in minimal
dilution to our shareholders and allow us to complete our exploration program
ON BEHALF OF THE BOARD OF DIRECTORS OF
NORTHERN SUN EXPLORATION COMPANY INC.
President & CEO
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of the contents of this news
For further information:
For further information: please contact the Company toll-free at (866)
827-2722, via email at email@example.com, or visit the Company website at