TORONTO, ONTARIO--(Marketwired - Jan. 23, 2014) - Canadian Oil Recovery and Remediation Enterprises Ltd. (TSX VENTURE:CVR) ("CORRE" or the "Company") is pleased to announce that the Company has entered into an agreement (the "Loan Re-structuring Agreement") to re-structure its loan arrangement relating to the funding of its proportionate contribution to the 2013 operating budget of SAR-CORRE MENA ("SCM") (SCM is a private company that operates independently of CORRE, executing on oil services contracts employing CORRE's suite of oil waste management solutions in the MENA region). As announced by press release dated May 22, 2013, a portion of CORRE's contribution to SCM's operating budget was financed via a loan in the amount of $562,500 from Mr. Ahmed Al-Hamdan. As partial consideration for the foregoing loan, CORRE agreed to transfer 5% of its 45% interest in SCM to Mr. Al-Hamdan. Funds advanced under the foregoing loan were delivered in stages, with the full amount of the loan having been advanced by December 31, 2013. Rather than proceeding with the transfer by CORRE to Mr. Al-Hamdan of 5% of CORRE's 45% interest in SCM, the parties have entered into the Loan Re-structuring Agreement, which sets out the following terms:
- Mr. Al-Hamdan will be conveyed a 60% interest in Lamar Limited, a Jebel Ali Free Zone offshore company that owns and controls 10% of SCM;
- CORRE will deliver a promissory note in the amount of $138,750 to the holder of a 60% interest in Lamar Limited as consideration for the aforementioned transfer (such note shall mature on December 31, 2014, but shall be open for prepayment in full or in part at any time or times without interest, notice, or bonus);
- CORRE will settle the remaining balance of the loan owing to Mr. Al-Hamdan (in the aggregate amount of $423,750) via the issuance of 3,138,889 units of CORRE at a price of $0.135 per unit, each such unit consisting of one common share of CORRE and one-half of one common share purchase warrant. Each whole common share purchase warrant will entitle the holder to acquire one additional common share of CORRE at a price of $0.235 for a period of 3 years from issuance. All of the foregoing common shares and warrants will be subject to a statutory four-month hold period in accordance with applicable securities laws; and
- The previously announced agreement for CORRE to transfer 5% of CORRE's 45% interest in SCM to Mr. Al-Hamdan will be cancelled and CORRE will retain its 45% interest in SCM.
The foregoing transactions are subject to the review and approval of the Board of Directors and the TSX Venture Exchange.
CORRE is a Canadian-based oil services company which trades on the TSX Venture Exchange under the symbol CVR. CORRE provides full cycle oil waste management solutions to the petroleum industry. CORRE's customers are primarily in the upstream petroleum sector (oil production and drilling companies) and downstream petroleum sector (oil refinery, transportation and distribution companies). CORRE's operating lines include remediating oil-contaminated soil; treating sludge, oil based muds and drilling waste, oil recovery; automated oil storage tank cleaning, oil and gas engineering, and project management. CORRE provides its advanced environmental solutions through strategic operating partnerships with some of the most distinguished companies throughout the world.
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.