Kinetex Resources Corporation

Kinetex Resources Corporation

July 08, 2010 09:30 ET

Kinetex Announces Increase and Renewal of Credit Facility

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 8, 2010) - Kinetex Resources Corp. (TSX VENTURE:KTX) (the "Company" or "Kinetex") is pleased to announce that its subsidiary, Kinetex Multi-Component Services Inc., after completing its credit review with HSBC Bank Canada (the "Lender") has been approved for renewal and an increase of 20% to its credit facility, which in aggregate now totals approximately $11.9 million dollars. The Facility letter was accepted on June 30, 2010 with the execution of the new terms and conditions expected to be available before July 31, 2010.

The credit facility bears interest at the Lender's prime rate (currently, 2.50%) plus 2.25 percent, is secured by a fixed and floating charge over all of the Company's assets and is subject to periodic review by the Lender. The Company is in compliance with all of the Lender's covenants.

"We are extremely pleased that we have secured this increase of our facility", stated Gil Schneider, CEO of Kinetex. "The confidence evidenced by HSBC in this increase is a reflection of our demonstrated growth, financial position and track record. This credit facility, together with the recently completed equity financings, will provide the Company increased flexibility in addressing its continued growth and the execution of its business plan."

About Kinetex

Kinetex is an oil, gas and mineral exploration services company with offices in Vancouver, BC, Calgary, Alberta and Bogota, Colombia. Through its subsidiaries, Kinetex provides data-rich high resolution subsurface images - essentially a brand-new exploration tool - to the energy, metals and minerals exploration and development industries seeking to go beyond the limitations of traditional data acquisition methods.

The Company seeks safe harbour.

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.

Contact Information

  • Kinetex Resources Corporation
    Gil Schneider
    Chief Executive Officer
    604-484-5761 or Toll-Free: 1-888-484-5761
    604-484-5760 (FAX)