SKANA Capital Corp.

March 29, 2011 09:30 ET

SKANA Extends $3.5 Million Secured Loan to MENA Hydrocarbons Inc.

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 29, 2011) - SKANA Capital Corp. (TSX VENTURE:SKN) ("SKANA") announces that it has extended a loan in the principal amount of $3.5 million to MENA Hydrocarbons Inc. ("MENA"). The proceeds of the loan will be used by MENA to (i) pay certain costs owing by MENA (and/or its subsidiaries) under the Syria Block 9 farmout agreement with Kulczyk Oil Ventures, (ii) pay the costs associated with acquiring certain plant and equipment and site preparation work in connection with the development of the Lagia Block in Egypt, and (iii) fund MENA's general and administrative expenses for the months of March and April and MENA's business development related costs and expenses. The principal amount of the loan, together with all accrued and unpaid interest and other amounts payable in respect of the loan, must be repaid upon the first to occur of:

  • a demand by SKANA to MENA made following the completion of the proposed reverse take-over of SKANA by MENA;
  • a demand made by SKANA to MENA made no earlier than 90 days from the date the loan was advanced or made after any event of default under the loan has occurred and is continuing; and
  • the occurrence of an event of insolvency in respect of MENA.

The loan bears interest at the rate of 10% per annum and is secured by all of MENA's assets under a demand debenture by MENA in favour of SKANA. Further details concerning the loan will be contained in the joint management information circular and proxy statement to be sent to MENA and SKANA shareholders in connection with the proposed reverse take-over transaction.

About MENA Hydrocarbons Inc.

MENA is a private Alberta company is engaged in oil and gas exploration with a focus in the Middle East, North Africa and Mediterranean.

About SKANA Capital Corp.

SKANA is listed on the TSX Venture Exchange as an Investment Issuer and carries on business as a merchant bank. It makes strategic investments in resource-based and other opportunities that it believes have significant potential for appreciation through its financial involvement and guidance.

Neither the 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

  • SKANA Capital Corp.
    Greg Clarkes
    (604) 669-4899