|By Marketwired .||
|July 9, 2014 04:30 PM EDT||
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 07/09/14 -- Letho Resources Corp. ("Letho") (TSX VENTURE:LET) is pleased to announce that it has signed a Letter of Intent ("LOI") with Stream Oil & Gas Ltd. ("Stream") whereby Letho has agreed to loan Stream up to CAD $5,000,000 (the "Loan"), which loan will be supported by the issuance of a convertible debenture to Letho. Subject to TSX Venture Exchange approval and the entry into a definitive agreement, Letho will advance the loan in two separate tranches, a first tranche of CAD $2.0 million ("First Loan") and the second tranche of CAD $3.0 million ("Second Loan"), on such dates as set out in the definitive agreement.
Under the terms of the convertible debenture set out in the definitive agreement, and are expected to include Stream's option to convert the Letho debenture into common shares of Stream. Stream may also prepay the debenture, in whole or in part, at any time without notice, bonus or penalty.
Letho recently entered into a letter of intent to acquire certain Namibian Onshore Oil and Gas Licenses (the "Namibian Licenses") from Incan Energy Inc. ("Incan"). Incan currently owns a 35% interest in six Namibian Licenses located within the Owambo Basin and a 33% interest in one additional Namibian License located in the Waterberg Basin.
The Namibian Licenses are comprised of six onshore licenses located within the Owambo Basin of Namibia with a total area of nearly 37,000 km2, and one onshore license located in the Waterberg Basin with a total area of nearly 10,000 km2.
Although the Owambo Basin is largely unexplored, the opportunity lies therein that large concession acreage is available for exploration and that there is an active petroleum system present. Historically, oil was discovered in the Etosha well 5-1A (Block 1814), and other the hydrocarbon indicators present and verified in the basin.
The Waterberg Basin is unexplored, but has live gas shows in several shallow boreholes. The opportunity exist to further exploration and define this smaller type African Rift Basin in better geological terms, with potentially finding a deeper and larger gas target that could be exploited for the generation of electricity. To learn more about us, please visit our website at: www.lethoresources.com
ON BEHALF OF THE BOARD OF DIRECTORS OF LETHO RESOURCES INC.
Letho Resources Inc.
Robert Hall, President & CEO
Information set forth in this news release contains forward-looking statements that are based on assumptions as of the date of this news release. These statements reflect management's current estimates, beliefs, intentions and expectations. They are not guarantees of future performance. Letho cautions that all forward looking statements are inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond Letho's control. Such factors include, among other things: risks and uncertainties relating to Letho's ability to complete a private placement financing to satisfy the terms of the letter of intent. Accordingly, actual and future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward looking information. Except as required under applicable securities legislation, Letho undertakes no obligation to publicly update or revise forward-looking information.
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.
Letho Resources Inc.
President, CEO and Director