Canadian Oil Recovery & Remediation Enterprises Ltd.

Canadian Oil Recovery & Remediation Enterprises Ltd.

November 17, 2009 14:46 ET

Canadian Oil Recovery & Remediation Enterprises Ltd. Announces Completion of Phase I of Aggregate $10 Million Financing

TORONTO, ONTARIO--(Marketwire - Nov. 17, 2009) - Canadian Oil Recovery and Remediation Enterprises Ltd. (TSX VENTURE:CVR) ("CORRE" or the "Company"), a provider of leading edge oil recovery and remediation technologies and services, is pleased to announce the closing of Phase I of its two-phase financing of up to $8.5 million (the "NAT Financing") with Al-Najah Advanced Technology Co. Ltd. ("NAT"). This is in addition to the two-phase financing of up to $1.5 million (the "Dahlawi Financing") CORRE recently closed with Hassan Dahlawi, a founding shareholder and director of the Company.

John Lorenzo, President and Chief Executive Officer of CORRE, commented that "We are extremely pleased to have NAT not only as a financial partner for CORRE, but as a partner who we expect will add to CORRE's extremely unique and strong position in the Middle East and North Africa markets and, more particularly, within Saudi Arabia, a prime potential market for our products and services."

Mr. Lorenzo added, "The Company continues to pursue a number of business opportunities which are in varying stages of development. We look forward to working together with NAT, further strengthening our relationship, as we develop our business and financial plan to capitalize on the opportunities that are ahead for us. We wish to extend our thanks to NAT's principals and executives for their significant support and vote of confidence."

The financings provide CORRE with potentially up to $10 million of new capital (if fully exercised) that the Company will use to fund the immediate phases of its business and financial plan. As CORRE will further report, the proceeds will be used to fund the purchasing and fabrication of additional plant and ancillary equipment, as required, in support of upcoming tenders, as well as to fund joint partnerships that will strategically expand CORRE's oil service product offerings and operational capabilities.

As part of Phase I of the NAT Financing, CORRE issued to NAT a convertible secured debenture (the "Convertible Secured Debenture") in the principal amount of $4.25 million (the "Principal Amount"). Additionally, as part of Phase I of the NAT Financing, CORRE issued to NAT warrants to purchase common shares of CORRE in the amount of an additional $4.25 million (the "NAT Share Warrants"). The exercise of such NAT Share Warrants comprises Phase II of the NAT Financing. The entire Principal Amount has been deposited in escrow with NAT's Canadian counsel and $1.4 million of the Principal Amount has been released and delivered to CORRE. This is in addition to $750,000 already advanced to CORRE under the Dahlawi Financing. The balance of the remaining $2.85 million of the Principal Amount of the NAT Financing will remain in escrow until such time as NAT approves, at its sole option, CORRE's five-year business and financial plan, which CORRE is currently developing. Upon approval of the plan by NAT, the remaining $2.85 million will be released to CORRE and the full Principal Amount of $4.25 million will automatically be converted into common shares of CORRE at a price of $0.20 per share. Additionally, NAT will then be eligible to exercise, at its option, the NAT Share Warrants, which enable NAT to purchase an additional $4.25 million of common shares of CORRE at $0.20 per share for a period of one year following the conversion of the entire Principal Amount into common shares of CORRE. In the event that NAT, in its sole option, does not accept CORRE's business and financial plan (which will automatically be deemed to have occurred if NAT has not accepted the plan on or before May 16, 2010), such $2.85 million will be immediately released from escrow and returned to NAT as a partial repayment of principal under the Convertible Secured Debenture.

For further details concerning the financings and all related matters and ancillary agreements, please refer to our press releases dated June 16, July 16, August 14 and October 7, 2009.

Concurrent with the Phase I advance under the NAT Financing, CORRE has paid a cash fee in the amount of $140,000 to Al-Hamdan Group, the Company's Jeddah based financial and business advisor.

The Company also announces the resignation of Mr. David Carbonaro from his position as a director of CORRE. Mr. Carbonaro has resigned this position in order to focus on his international law practice that is placing significant demands on his time, however he will continue to serve in a financial and legal consultancy capacity as required by the Company. The board of directors of CORRE expresses it utmost sincere thanks to Mr. Carbonaro for years of faithful service and for his efforts and stewardship of the Company throughout its infancy and initial developmental stages.


CORRE is a Canadian company that utilizes its proprietary Advanced Recovery Equipment Systems ("ARES") program to provide five comprehensive solutions for oil recovery and soil remediation. ARES I, II and IV are commercialized technologies offering economically viable and environmentally safe sludge treatment solutions and remediation of oil contaminated sand, soil and solids. ARES III is currently being commercialized for the extraction of oil from tar sands and ARES V represents a bioremediation technology in research and development. CORRE plans to deploy ARES in the oil producing countries of the Middle East and other regions where there is substantial demand for its oil recovery and remediation services.

Forward Looking Statements

Except for statements of historical fact relating to the Company, certain information contained herein constitutes forward-looking statements. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Except as required by applicable securities requirements, the Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.

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 the release.

Contact Information