CALGARY, ALBERTA--(Marketwire - July 24, 2012) -
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CYGAM Energy Inc. ("CYGAM" or the "Corporation") (TSX VENTURE:CYG) is pleased to announce that the Corporation has executed a Securities Lending Agreement ("SLA") with a controlling shareholder of the Corporation.
Under the SLA the Corporation has borrowed 200,000 common shares of Peyto Exploration & Development Corp. (the "Shares") on a non interest bearing, unsecured basis. The principal terms of the SLA include the return of the Shares to the lender within 270 days of the date of the SLA, or following a financing or sale of assets by CYGAM yielding cash proceeds in excess of $5 million. CYGAM intends to use the Shares as collateral under its credit arrangement with a recognized Canadian financial institution to secure funds up to 50% of the market value of the Shares for ongoing capital requirements and general working capital purposes.
About CYGAM Energy Inc.
CYGAM is a Calgary based exploration company with extensive international exploration permits and a producing property in Tunisia. The main focus of the Company is the acquisition, exploration and development of international oil and gas permits, primarily in Italy, Tunisia and the Mediterranean Basin. CYGAM currently holds various interests in seven exploratory permits in Italy plus three exploratory permits and the BBT Production Concession in Tunisia which together encompass a total of approximately 2.7 million gross acres.
This press release may contain or refer to certain forward-looking statements relating, but not limited to, Cygam's expectations, intentions, plans and beliefs with respect to Cygam. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or equivalents or variations, including negative variations, of such words and phrases, or state that certain actions, events or results, "may", "could", "would", "should", "might" or "will" be taken, occur or be achieved. Forward-looking statements include, without limitation, statements relating to Cygam's beliefs regarding the advantages and use of the Shares and the corresponding funds. Forward-looking statements rely on certain underlying assumptions that, if not realized, can result in such forward-looking statements not being achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause the actual results to be materially different from the results expressed or implied by such forward-looking statements and there can be no assurance that such statements will prove to be accurate. Other than as required by applicable Canadian securities laws, Cygam does not intend to update or revise any such forward-looking statements to reflect events or circumstances after the date of this document or to reflect the occurrence of unanticipated events. Accordingly, readers should not 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 this release.