Long Run Exploration Ltd.

Long Run Exploration Ltd.

January 25, 2016 07:00 ET

Long Run Exploration Ltd. Announces Extension of Interim Forbearance Agreement With Its Lending Syndicate and Deferral of Payment of Interest on Convertible Debentures

CALGARY, ALBERTA--(Marketwired - Jan. 25, 2016) - Long Run Exploration Ltd. ("Long Run" or the "Company") (TSX:LRE) announces that it has entered into an extension to the interim forbearance and amending agreement to its credit agreement with its lending syndicate (the "Lenders"). The extension of the forbearance relief from January 22, 2016 to January 29, 2016 reflects the progress made to date in documenting the amendments to Long Run's credit facilities, which is a pre-condition to the implementation of the plan of arrangement (the "Arrangement") announced on December 21, 2015. Long Run expects that such amendments will be executed by the end of the forbearance period.

Long Run and the purchaser continue to work together toward the completion of the Arrangement for the benefit of all stakeholders. The forbearance extension has no impact on the anticipated closing of the Arrangement in April 2016.

As a term of the forbearance extension, the credit agreement has been amended to restrict the Company from making any payment of interest on its outstanding 6.40% convertible unsecured subordinate debentures (the "Debentures") without the prior written consent of its Lenders. As a result, the semi-annual interest payment on the Debentures payable February 1, 2016 will be required to be deferred. However, this interest will be paid on closing of the Arrangement in connection with the acquisition of the Debentures, together with all other accrued and unpaid interest on the Debentures, in accordance with the Arrangement. The Toronto Stock Exchange (the "TSX") has advised the Company that the Debentures, when they commence trading on January 26, 2016, will trade on an interest flat basis until further notice. The TSX has advised that it will not report accrued interest regarding any trades made on an interest flat basis to its participating organizations.

The Company's Board of Directors and Management continue to believe that pursuing the Arrangement is in the best interest of Long Run and its stakeholders.

Visit the Company's website at www.longrunexploration.com.


Forward-Looking Statements

Certain information set forth in this press release, including information and statements which may contain words such as "could", "plans", "should", "anticipates", "expects", "believes", "will" and similar expressions and statements relating to matters that are not historical facts, contain forward-looking statements, including but not limited to statements regarding: the proposed Arrangement, timing on execution of the amendments to the Company's credit facilities and that the deferred interest on the Debentures will not be paid on February 1, 2016 but paid in connection with the acquisition of the Debentures under the Arrangement. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond Long Run's control. Completion of the Arrangement is subject to a number of conditions. Failure to satisfy any of these conditions, the emergence of a superior proposal or the failure to obtain approval of Long Run's shareholders, optionholders or debentureholders may result in the termination of the arrangement agreement. The foregoing list is not exhaustive. Additional information on these and other risks that could affect completion of the Arrangement will be set forth in the information circular, which will be available on SEDAR at www.sedar.com. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The actual results, performance or achievement of Long Run could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that Long Run will derive therefrom. Long Run disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.

Contact Information

  • Long Run Exploration Ltd.
    William E. Andrew
    Chair and Chief Executive Officer
    (403) 261-6012

    Long Run Exploration Ltd.
    Corine Bushfield
    Senior Vice President and Chief Financial Officer
    (403) 261-6012

    Long Run Exploration Ltd.
    Lauren Kimak
    Manager, Investor Relations
    (403) 716-3222
    (888) 598-1330