Detector Exploration Ltd.

November 14, 2008 16:00 ET

Detector Obtains Funding

CALGARY, ALBERTA--(Marketwire - Nov. 14, 2008) - Detector Exploration Ltd. ("Detector") (TSX VENTURE:DEX) announces that Detector has borrowed funds on a demand, unsecured basis from Ronald E. Alexander:

(a) the loan amount is $200,000;

(b) the loan shall pay interest at the rate of 12% per annum;

(c) repayment of the loan can be demanded at any time by Ronald E. Alexander;

(d) Detector can repay all or any portion of the loan at any time;

(e) the loan is unsecured and is not convertible.

As Ronald E. Alexander is President, C.E.O. and Director of Detector, the borrowing of the loan from Ronald E. Alexander is a "related party transactions" within the meaning of OSC Policy 61-101 (incorporated by reference into TSX-V Policy 5.9). As a related party transaction, the following additional disclosures are provided (following the listing of disclosures in Section 5.2 of OSC Policy 61-101).

The purpose of the loan from the perspective of Detector is to provide Detector with capital needed to fund continuing activities. Alternative funding is not available within the time period required. Since the Convertible Debenture issuance transaction only involves up to $200,000, little effect on Detector's business and affairs is expected from the issuance of the Convertible Debentures.

Ronald E. Alexander, through his investment in the loan will be entitled to receive interest and return of the principal in priority to shareholders.

The review and approval process that has been adopted by Detector for this transaction is as follows:

a) the Board of Directors of Detector has already approved the borrowing of the funds and in particular the appropriate interest rate to pay given market conditions, risk factors and lack of immediately available alternative sources of capital;

b) Detector has determined that distribution of an information circular to shareholders, preparation and distribution of a formal valuation and seeking of Detector shareholder approval of the Debenture issue is not necessary under OSC Policy 61-101 (including TSX-V policy 5.9 which incorporates such policy by reference) because the transaction is a loan on reasonable commercial terms that are not less advantageous to Detector as compared to a loan that might be obtained from a person dealing at arm's length to Detector and loan is not convertible into equity and is not repayable with equity;

Detector is an oil and gas corporation whose shares are listed for trading on TSX Venture Exchange Inc. under the symbol DEX.

As of November 14, 2008 Detector has outstanding 11,918,701 Common Shares and 590,000 options to acquire Common Shares (under Detector's stock option plan). A total of 1,237,500 additional Common Shares would be issuable if the entire amount of $495,000 convertible debentures outstanding were converted at the conversion price currently in effect (i.e. $0.40). A total of 618,750 additional Common Shares would be issuable, if the maximum number of warrants was issued upon exercise of the convertible debentures and all the warrants were exercised.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Detector Exploration Ltd.
    Ronald E. Alexander
    (403) 264-1880
    (403) 265-9105 (FAX)