Jagercor Energy Corp. (JEM:CSE) (JAMTF) (the "Company" or "Jagercor") announces that it has completed a private placement of convertible securities having a principal face value of $200,000 from two directors of the Company. The convertible securities bear interest at the rate of 10% per annum, payable annually and have a maturity date of five years from the date of advance. The lenders may convert at any time, all or a portion of the principal amount into units of the Company at a price of $0.05 per unit. Each unit consists of one common share and one share purchase warrant (a “Warrant”). Each Warrant will be exercisable into a common share of Jagercor for a period of one year from the date of conversion of the principal (or such shorter period that ends on the maturity date, if the maturity date is sooner), on payment of the exercise price of $0.06 per common share. The Company has the right to repay the convertible loan earlier than the five year maturity date, at any time within three months from the date of advance.
The proceeds of the private placement will be used for general working capital purposes. All private placement securities will be restricted from trading for a period of four months from closing.
The issuance of private placement securities to directors of the Company also constitutes a related- party transaction under MI 61-101. Because the Company’s shares trade only on the CSE, the issuance of securities is exempt from the formal valuation requirements of Section 5.4 of MI 61-101 pursuant to Subsection 5.5(b) of MI 61-101 and exempt from the minority approval requirements of Section 5.6 of MI 61-101.
The Company is actively seeking oil and gas fields operations in the Neuquina Basin, Argentina; to increase its actual base production and project portfolio, with focus on conventional flowing crude oil production and both kinds of proven reserves, conventional and unconventional.
About Jagercor Energy Corp.
Jagercor is a diversified, upstream oil and gas company with capabilities in oil and gas production management. The Company has a highly trained management team with many years of operational experience in the oilfield operation sector in Argentina.
On behalf of the Board of Directors
JAGERCOR ENERGY CORP.
President & CEO
This news release includes certain information, with management’s assessment of Jagercor’s future plans and operations, and contains forward-looking statements which may include some or all of the following: the aggregate proceeds raised on completion of the private placement and future plans for oil and gas operations in Argentina. By their nature, forward-looking statements are subject to numerous risks and uncertainties; some of which are beyond Jagercor’s control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, environmental risks, changes in environmental, tax and royalty legislation, competition from other industry participants, the lack of availability of qualified personnel or management, the inherent uncertainties and speculative nature associated with oil and gas exploration, development and production including drilling risks, geological risks and others, stock market volatility and ability to access sufficient capital from internal and external sources. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Actual results could differ materially from those expressed in, or implied by, these forward-looking statements. Jagercor disclaims any intention or obligation to update or revise any forward- lookingstatements,whetherasaresultofnewinformation,futureeventsorotherwise, exceptasrequiredbylaw.
The CSE has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.