Ember Resources Inc.
TSX : EBR

Ember Resources Inc.

April 28, 2011 16:49 ET

Ember Resources Inc. Enters Into New Credit Facility

CALGARY, ALBERTA--(Marketwire - April 28, 2011) -

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Ember Resources Inc. ("Ember") (TSX:EBR) announced today that it has entered into an agreement with ATB Corporate Financial Services to provide a new credit facility for Ember. The new credit facility will consist of an $88 million revolving operating loan facility (the "Operating Facility"). The Operating Facility will initially be used to refinance Ember's existing syndicated credit facilities, payment of which was due on April 29, 2011, as well as for general operating purposes, development work and acquisitions of oil and gas assets. The Operating Facility is repayable on demand and will be secured by a general security agreement and a $250 million debenture providing for a first floating charge and first priority security interest over all of Ember's present and after acquired personal property and a fixed charge against specific properties. Interest payments under the Operating Facility will be made at prime plus 1.75% per annum to June 30, 2011 and at prime plus 1.25% per annum therafter.

The Operating Facility is being provided solely in connection with the plan of arrangement transaction with ERI Acquisition Ltd., a corporation controlled by Brookfield Special Situations Group and funds that are a part of the ARC Financial Corp. group, announced on April 19, 2011 (the "Arrangement"). It is a condition to the Operating Facility that Ember complete the Arrangement on or before June 23, 2011 and that the Operating Facility become an obligation of the company resulting from the amalgamation of Ember and ERI Acquisition Ltd. as part of the Arrangement.

FORWARD-LOOKING STATEMENTS

This press release may contain forward-looking statements including anticipated timing of various matters relating to the completion of the transactions contemplated by the Operating Facility. These statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual events to differ from those anticipated. These risks include, but are not limited to: the risks associated with the completion of the transactions contemplated by the Arrangement and the timing and receipt of required shareholder, court, regulatory and other approvals and consents. No assurances can be given that any of the events anticipated by the forward looking statements will transpire or occur. Except as required by law, Ember undertakes no obligation to update or revise any forward-looking statements.

Ember Resources Inc. is a resource company specializing in coalbed methane (CBM) with extensive land and resource holdings in Alberta, Canada. Ember's shares are traded on the Toronto Stock Exchange under the trading symbol "EBR".

Contact Information

  • Ember Resources Inc.
    Mr. Douglas A. Dafoe
    President & CEO
    403 270-0803
    403 270-2850

    Ember Resources Inc.
    Mr. Bruce Ryan
    Vice-President Finance & CFO
    403 270-0803
    403 270-2850