CALGARY, March 7, 2016 /CNW/ - Sterling Resources Ltd. (TSX-V: SLG) ("Sterling" or the "Company", together with its subsidiaries the "Group") is pleased to announce that the holders ("Bondholders") of the senior secured bond (ticker on Nordic ABM exchange: STRE01 PRO) (the "Bond") issued by its subsidiary Sterling Resources (UK) Ltd. ("SRUK") approved further amendments (the "Bond Amendments") to the bond agreement originally entered into on May 2, 2013 (as amended and restated thereafter) at a meeting of the Bondholders held today. In the meeting, 94.8 percent of the total outstanding Bonds were voted, of which 100 percent were in favour of the Bond Amendments.
The Bond Amendments were summarised in the news release dated February 29, 2016 and described in detail in the Bondholder meeting summons letter of the same date which is filed on SEDAR (www.sedar.com), and available on the bond information website www.stamdata.com and the Company's website. The Bond Amendments are principally intended to extend the deadlines for achieving a targeted redemption of the Bonds from February 29, 2016 to April 1, 2016 and for payment of the outstanding amortization instalment (with associated premium and accrued interest) from February 29, 2016 to March 15, 2016, and to lower the minimum liquidity requirement for SRUK on a temporary basis, while the Company and SRUK continue discussions with the Bond Trustee and a group of large Bondholders regarding a recapitalization of the Group.
Sterling is a Canadian-listed international oil and gas company headquartered in Calgary, Alberta with assets in the United Kingdom, France and the Netherlands. The common shares are listed and posted for trading on the TSX Venture Exchange (TSX-V) under the symbol "SLG".
Neither the TSX-V nor its Regulation Services Provider (as that term is defined in the policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this release.
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All statements included in this news release that address activities, events or developments that Sterling expects, believes or anticipates will or may occur in the future are forward-looking statements. In particular, this news release contains forward-looking statements with respect to the implications of the implementation of the Bond Amendments on Sterling's financial position and the negotiation of a recapitalization of the Group.
These forward-looking statements involve numerous assumptions made by Sterling based on its experience, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. In addition, these statements involve substantial known and unknown risks and uncertainties that contribute to the possibility that the forward looking statements will prove inaccurate, certain of which are beyond Sterling's control. Readers should also carefully consider the matters discussed under the heading "Risk Factors" in the Company's Annual Information Form.
Undue reliance should not be placed on these forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. Sterling's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements. These statements speak only as of the date of the news release. Sterling does not intend and does not assume any obligation to update these forward-looking statements except as required by law.
SOURCE Sterling Resources Ltd.
For further information: For further information: visit www.sterling-resources.com or contact: Jacob Ulrich, Chief Executive Officer, Phone: +1 (403) 237-9256, [email protected]; David Blewden, Chief Financial Officer, Phone: +1 (403) 237-9256, [email protected]; George Kesteven, Manager, Corporate and Investor Relations, Phone: +1(403) 215-9265, Mobile: +1 (403) 519-3912, [email protected]