CALGARY, Nov. 6, 2015 /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 UK senior secured bond (ticker on Nordic ABM exchange: STRE01 PRO) (the "Bond") issued by its subsidiary Sterling Resources (UK) plc approved proposed further amendments (the "Bond Amendments") to the Amended & Restated Bond agreement dated May 22, 2015 (the "Bond Agreement") at a meeting of Bondholders held today. In the meeting, 94.7 percent of the total outstanding Bonds were voted, of which 100.0 percent were in favour of the Bond Amendments.
The Bond Amendments were summarised in the news release dated October 22, 2015 and described in detail in the Bondholder meeting summons letter of the same date which is filed on SEDAR and available on the Company's website. The Bond Amendments are intended to provide the Group with necessary liquidity up to the end of February 2016 while it completes one or more transactions including potentially a refinancing, a corporate sale or merger and/or an asset sale which achieves a full prepayment in cash of the outstanding Bond together with the applicable 7.5 percent prepayment premium and accrued interest and additional repayment fees by February 29, 2016.
A further amended and restated Bond Agreement inclusive of the Bond Amendments will be executed later this month, a copy of which will be filed on SEDAR and made available on the Bond information website www.stamdata.com.
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 Sterling's ability to sell or merge the company, or to refinance the Bond, and/or to complete an asset sale.
These forward-looking statements involve numerous assumptions made by Sterling based on its experience, perception of historical trends, 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 predictions, forecasts, projections and other-forward looking statements will prove inaccurate, certain of which are beyond Sterling's control, including: the impact of general economic conditions in the areas in which Sterling operates, civil unrest, industry conditions, changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in commodity prices, foreign exchange or interest rates, stock market volatility and obtaining required approvals of regulatory authorities. In addition there are risks and uncertainties associated with oil and gas operations. 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.
Financial outlook information contained in this news release about prospective results of operations, financial position or cash flows is based on assumptions about future events, including economic conditions and proposed courses of action, based on management's assessment of the relevant information currently available. Readers are cautioned that such financial outlook information contained in this news release should not be used for purposes other than for which it is disclosed herein.
SOURCE Sterling Resources Ltd.
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]