Toscana Energy Income Corporation Announces Closing of $40 Million Credit Facility

CALGARY, Dec. 21, 2012 /CNW/ - Toscana Energy Income Corporation (the "Company") (TSX Venture: TEI) is pleased to announce that Firenze Energy Ltd. ("Firenze"), a wholly-owned subsidiary of the Company, has entered into a new credit facility with a Canadian chartered bank (the "New Credit Facility").  The New Credit Facility consists of a $40 million revolving operating demand loan.  Firenze has paid out its existing credit facility with the proceeds from the New Credit Facility.  The New Credit Facility is secured by a $40 million revolving credit agreement, a $100 million first floating charge over all of the assets of the Company and Firenze, a general assignment of book debts of Firenze and an unlimited liability guarantee by the Company.

About Toscana Energy Income Corporation

Toscana Energy Income Corporation is a conventional oil and gas producer with the mandate to acquire high quality, long life oil and gas assets including royalties, non-operated working interests and unitized production for yield and capital appreciation. Toscana Energy Income Corporation is managed by Sprott Toscana through Toscana Energy Corporation. Sprott Toscana is a member of the Sprott Group of Companies.

About Sprott Toscana

Sprott Toscana (formerly Toscana Merchant Group) is a team of Calgary-based energy specialists that manage three separate businesses: Toscana Energy Income Corporation (through Toscana Energy Corporation), Toscana Financial Income Trust and Maple Leaf Energy Income LPs. In July 2012, Toscana Merchant Group joined the Sprott Group of Companies when it was acquired by Sprott Inc. (TSX: SII), Canada's leading alternative asset manager and a global leader in resource investing.

SOURCE Toscana Energy Income Corporation

Copyright 2012 Canada NewsWire

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