Kinetex Resources Corporation
TSX VENTURE : KTX

Kinetex Resources Corporation

April 21, 2010 14:22 ET

Kinetex Announces Convertible Debenture Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 21, 2010) - Kinetex Resources Corporation (TSX VENTURE:KTX) ("Kinetex" or the "Company") announced today that it has arranged a private placement, subject to Exchange approval, consisting of up to 500,000 convertible debentures (the "Debentures"), for gross proceeds of up to $500,000 (the "Offering").

The Debentures will bear interest at a rate of 10% per annum, payable quarterly, in arrears, on each of March 31, June 30, Sept. 30 and Dec. 31 of each year. Unless converted earlier, principal and accrued interest under all Debentures shall be due and payable on April 17, 2013 (the "Maturity Date"). The principal amount of the Debentures will be convertible at the election of the holder into common shares (the "Common Shares") at any time prior to the Maturity Date at a conversion price of $0.60 per Common Share. 

The Debentures may be redeemed at the option of the Company after April 17, 2011, provided that the Company will have given the holder of the Debenture not less than three months prior written notice of its intention to redeem.

The Debentures may be redeemed at the option of the Company at any time from April 17, 2011 onward, provided that the Company shall have given the holder not less than 3 months prior written notice of its intention to redeem. Upon receipt of written notice from the Company, the holder shall have the option to convert the Debenture into Common Shares of the Company provided the holder provides written notice within 45 days of the holder's intent to convert the Debenture. 

Finders' fees may be payable in connection with the Offering, in accordance with TSX Venture Exchange policies. The Offering remains subject to acceptance by the TSX Venture Exchange.

The Company also announced today that it has amended the terms of an outstanding convertible debenture in the aggregate amount of $2,700,000, initially completed and announced on April 19, 2007 and amended on July 2, 2008 (the "Amended Debenture").

Under the terms as amended, the maturity date has been extended from April 17, 2011 to April 17, 2013, and the conversion price has been adjusted from $1.25 per Unit to $0.60 per Common Share to better reflect current market prices. The Amended Debenture may be redeemed at the option of the Company at any time from April 17, 2011 onward, provided that the Company shall have given the holder not less than 3 months prior written notice of its intention to redeem. Upon receipt of written notice from the Company, the holder shall have the option to convert the Amended Debenture into Common Shares of the Company provided the holder provides written notice within 45 days of the holder's intent to convert the Restated and Amended Debenture. 

All other terms of the Amended Debenture remain unchanged.

The holder of the Amended Debenture has accepted and agreed to the proposed amendments.

A Facility Review fee will be paid to the Debenture Holder in connection with the amended debenture, in accordance with TSX Venture Exchange policies.

The amendment remains subject to the approval of the TSX Venture Exchange.

About Kinetex
Kinetex is an oil, gas and mineral exploration services company with offices in Vancouver, BC, Calgary, Alberta and Bogota, Colombia. Through its subsidiaries, Kinetex provides data-rich high resolution subsurface images - essentially a brand-new exploration tool - to the energy, metals and minerals exploration and development industries seeking to go beyond the limitations of traditional data acquisition methods.

The Company seeks safe harbour.

Forward-Looking Statements
Certain statements contained in this news release constitute forward-looking statements. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar expressions. These statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements. Based on current available information, the Company believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that those expectations will prove to be correct. The forward-looking statements in this news release are expressly qualified by this statement, and readers are advised not to place undue reliance on the 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 this release.

Contact Information

  • Kinetex Resources Corporation
    Gil Schneider
    Chief Executive Officer
    604-484-5761 or Toll-Free: 1-888-484-5761
    604-484-5760 (FAX)
    gil@kinetex.ca
    www.kinetex.ca