Solara Exploration Ltd.

TSX VENTURE : SAA.A


Solara Exploration Ltd.

December 07, 2012 16:36 ET

Solara Exploration Provides Corporate Update

CALGARY, ALBERTA--(Marketwire - Dec. 7, 2012) - Solara Exploration Ltd. (TSX VENTURE:SAA.A) ("Solara" or the "Company") advises that the Company's senior lender under its secured credit facility has made demand on the Company for repayment of all indebtedness under such facility, which is currently in the amount of $15.5 MM plus any unpaid interest by December 17, 2012. The demand is due to the Company being in breach of certain covenants under the facility as a result of the Company's current working capital deficiency.

The Company also advises that the syndicate of agents lead by Burgeonvest Bick Securities Limited along with Octagon Capital Corp. and Global Securities Corp. have withdrawn their Term Sheet for the Private Placement of up to $12 MM for the proposed combined entity of Solara and Verity Energy Ltd. ("Verity"). The Company also advises that it has agreed to terminate the Amalgamation Agreement for the proposed merger of Solara and Verity. The Company plans to investigate and review all other opportunities to provide for the ongoing survival of the Company in light of these current developments.

READER ADVISORY

This news release may contain certain forward-looking statements, including management's assessment of future plans, acquisitions and operations, and capital expenditures and the timing thereof, that involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control. Such risks and uncertainties include, without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources, the impact of general economic conditions in Canada, the United States and overseas, industry conditions, changes in laws and regulations (including the adoption of new environmental laws and regulations) and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, stock market volatility and market valuations of companies with respect to announced transactions and the final valuations thereof, and obtaining required approvals of regulatory authorities. The Company's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances 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, including the amount of proceeds, that the Company will derive therefrom. Readers are cautioned that the foregoing list of factors is not exhaustive. All subsequent forward-looking statements, whether written or oral, attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

108,710,732 Class A Common Shares

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

  • Ross O. Drysdale
    On Behalf of the Board of Directors
    Solara Exploration Ltd.
    (403) 585-3737
    ross@drysdalelaw.com