Azabache Energy Inc.

Azabache Energy Inc.

July 29, 2014 11:27 ET

Azabache Announces Convertible Loan Financing

CALGARY, ALBERTA--(Marketwired - July 29, 2014) -


Azabache Energy Inc. ("Azabache" or the "Company") (TSX VENTURE:AZA) is pleased to announce that it has entered into an agreement with an insider of the Corporation to complete a non-brokered financing (the "Debt Offering") of a $1,000,000 convertible, unsecured interest-bearing loan (the "Convertible Loan").

The Convertible Loan will bear interest at a rate of 8% per annum, calculated and payable together with the principal of the Convertible Loan upon the maturity date. The term of the Convertible Loan shall be one (1) year, with the Company having a right to prepayment at any time. At maturity, the Convertible Loan may be convertible into Common Shares of the Company at a conversion price of $0.16 per share.

The Debt Offering is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange Inc.

The Company intends to use the proceeds from the Debt Offering for general working capital and general corporate purposes.

Neither the TSXV nor its regulation services provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

This press release contains forward-looking statements. More particularly, this press release contains statements concerning the Debt Offering, the expected use of proceeds of the Debt Offering and the expected regulatory approval. The forward-looking statements contained in this document are based on certain key expectations and assumptions made by Azabache. Although Azabache believes that the expectations and assumptions on which the forward- looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Azabache can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks.

These include, but are not limited to, the failure to obtain necessary regulatory approvals, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), commodity price and exchange rate fluctuations. The forward-looking statements contained in this document are made as of the date hereof and Azabache undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful. The securities have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

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