Jazz Renegotiates Shareholder Loans
September 30 2012 - 11:33AM
PR Newswire (Canada)
JZR: TSX-V VANCOUVER, Oct. 1, 2012 /CNW/ - Jazz Resources Inc.
announces that it has renegotiated the terms of certain amounts due
to shareholders by the Company amounting to $635,505 as of the
financial year ended June 30, 2012. The loans and amounts due
were formerly unsecured, non-interest bearing and without fixed
terms of repayment and under the terms of new loan agreements will
now be reclassified as long-term loans bearing interest at a rate
of 5% per annum compounded annually and becoming due and payable on
or before June 30, 2015. The reclassification of
the debt from short term liabilities to long term liabilities will
effectively reduce the Company's current working capital deficiency
and provide the Company with a fixed term for repayment of the
debt. Two directors of the Company are directly or indirectly
parties to the new loan agreements. Mr. Douglas Philip,
a director of the Company, has advanced a total of $324,300 to the
Company for the period ended June 30, 2012. Glen
Developments Ltd., a corporation owned by Mr. Bryan Glen,
a director and the Chief Executive Officer of the Company, has
advanced loans or accrued management fees owed by the Company
totaling $311,205 for the period ending June 30, 2012. The
amendments to the credit arrangements with the directors constitute
a related party transaction pursuant to Multilateral Instrument
61-101 - Protection of Minority Security Holders in
Special Transactions but are exempt from any minority shareholder
approval requirements. The fair market value of the interest
to be paid on the loans, insofar as it involves the payment to
non-arm's length parties (approximately $100,171), does not exceed
25% of the Company's market capitalization, and the transaction is
an amendment to the terms of credit arrangements that are provided
on reasonable commercial terms that are not less advantageous to
the Company than if they were obtained from a person dealing at
arm's length with the Company. The new loans remain
unsecured, are not convertible into or repayable in equity or
voting securities of the Company, and no bonus shares or bonus
warrants will be issued in connection with the loans. The loans
agreements are subject to acceptance by the TSX Venture Exchange.
About Jazz Resources Inc. Jazz Resources is a junior resource
mining company focused on acquiring, exploring, and developing
mineral properties. The objective of the Company is to carry out
its exploration program on the Teddy Glacier, Spider Mine, and
Burniere properties located in the Revelstoke mining district of
B.C. Canada. On behalf of the Board of Directors, "Bryan Glen"
President 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. This press release may contain
forward-looking statements. All statements, other than
statements of historical fact, constitute "forward-looking
statements" and include any information that addresses activities,
events or developments that the Company believes, expects or
anticipates will or may occur in the future including the Company's
strategy, plans or future financial or operating performance and
other statements that express management's expectations or
estimates of future performance. All such forward-looking
information and statements are based on certain assumptions and
analyses made by the Company's management in light of their
experience and perception of historical trends, current conditions
and expected future developments, as well as other factors
management believes are appropriate in the circumstances.
These statements, however, are subject to known and unknown risks,
uncertainties and other factors that may cause the actual results,
level of activity, performance or achievements of the Company to be
materially different from those expressed, implied by or projected
in the forward-looking information or statements. Important
factors that could cause actual results to differ from these
forward-looking statements include but are not limited to: risks
related to the exploration and potential development of the
Company's projects, the actual results of current exploration
activities, conclusions of economic evaluations, changes in project
parameters as plans continue to be refined, future prices of gold,
as well as those factors discussed in the sections relating to risk
factors of the Company set out in certain of the Company's
disclosure documents filed on SEDAR. There can be no assurance that
any forward-looking statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not
place any undue reliance on forward-looking information or
statements. Except as required by law, the Company does not
intend to revise or update these forward-looking statements after
the date of this document or to revise them to reflect the
occurrence of future unanticipated events. Jazz Resources Inc.
CONTACT: JAZZ RESOURCES INC.2394 W. BroadwayVancouver, BC V6K
2E5Telephone: 604 733-4830 Fax: (604)736-8584 Email:
mail@jazzresources.ca
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