|By Marketwired .||
|April 14, 2014 07:23 PM EDT||
CALGARY, ABLERTA -- (Marketwired) -- 04/14/14 -- CYGAM Energy Inc. (the "Company" or "CYGAM") (TSX VENTURE: CYG) has executed an amended Revolving Promissory Note (the "Amended RPN") with a major shareholder and director of the Company. Under the Amended RPN, the Company has available up to $4.5 million, to be drawn down as required by the Company. At this time, the Company has drawn $2.4 million on the facility. The Amended RPN is currently unsecured and other terms include a term to January 1, 2015, interest payable at a rate of 2.00% per month, payable upon maturity, and a covenant to pledge the common shares of Cygam Energy Italia S.p.A, a wholly owned Italian subsidiary of CYGAM, as security for the Amended RPN (subject to approvals required by the Company). The Amended RPN is a "related party transaction" for the purposes of Multilateral Instrument 61-101, however, the Company is exempt from seeking minority approval.
CYGAM intends to use proceeds available under the Amended RPN for ongoing capital requirements and general working capital purposes.
About CYGAM Energy Inc.
CYGAM is a Calgary based exploration company with extensive international exploration permits and a producing property in Tunisia. The main focus of CYGAM is the acquisition, exploration and development of international oil and gas permits, primarily in Italy and Tunisia. CYGAM currently holds various interests in five exploratory permits in Italy plus two exploratory permits and the BBT Production Concession in Tunisia which together encompass a total of approximately 1.4 million gross acres.
Neither 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
Forward Looking Information
In the interest of providing shareholders and potential investors with information regarding CYGAM, including management's assessment of the future plans and operations of CYGAM, certain statements contained in this news release constitute forward-looking statements or information (collectively "forward-looking statements") within the meaning of applicable securities legislation including forward-looking statements related to the use of the funds under the Amended RPN, the amounts to be drawn at future dates and the timing thereof and the potential pledge of the common shares of Cygam Energy Italia S.p.A.
With respect to the forward-looking statements contained in this news release, CYGAM has made assumptions regarding, among other things: security and operational issues; the results of geological, geophysical and reservoir analysis and testing and completion operations; the needs for future financing; commodity prices; the receipt of required government and regulatory approvals; and global economic conditions. Although CYGAM believes that the expectations reflected in the forward-looking statements contained in this news release, and the assumptions on which such forward-looking statements are made, are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned not to place undue reliance on forward-looking statements included in this news release, as there can be no assurance that the plans, intentions or expectations upon which the forward-looking statements are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties that contribute to the possibility that the forward-looking statements will not occur, which may cause CYGAM's actual performance and financial results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, without limitation: political and security risks associated with the Operator's Tunisian operations, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve and resource estimates, inability to retain drilling rigs and other services, capital expenditure costs, including drilling, completion and facilities costs, unexpected decline rates in wells, delays in projects and/or operations, wells not performing as expected, delays resulting from or inability to obtain the required regulatory approvals, CYGAM's ability to access sufficient capital from internal and external sources; and risks associated with the operation of CYGAM's assets by third parties, including the limited ability of CYGAM to exercise influence over the operation of those assets or their associated costs, the timing and amount of capital expenditures, the operator's expertise and financial resources, the approval of other participants, and the selection of technology and risk management practices. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements. Readers are cautioned that the forgoing list of factors is not exhaustive.
Additional information on these and other factors that could effect CYGAM's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com). Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and CYGAM does not undertake any obligation to update publicly or to revise any of the forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.