/THIS NEWS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES OR TO
ANY UNITED STATES NEWS SERVICES./
CALGARY, Oct. 8, 2014 /CNW/ - 3MV Energy Corp. ("3MV" or the "Company") (TSXV: TMV) is pleased to announce that it has entered into a secured
loan facility whereby it may borrow up to $10,000,000 (the "Facility") from the Invico Diversified Income Limited Partnership (the "Lender") for a term of 24 months from final advance date. The Lender is one of
a number of investment funds managed by Calgary based Invico Capital
Corporation ("Invico"). Invico is a registered investment fund manager and portfolio manager
with offices in Calgary and Toronto overseeing in excess of $200
million of assets under management.
The funds will be available in two advances with the first advance of
$5,000,000 on or before November 1, 2014 ("Tranche A") and a second advance of up to $5,000,000 on or before February 28,
2015 ("Tranche B"), subject to waiver of certain advancement conditions. In exchange for
providing the Facility, the Company shall issue warrants to the Lender
concurrent with the advancement of Tranche A funds entitling the Lender
to purchase 10,000,000 common shares of the Company at an exercise
price equal to $0.25 per share. The Company shall issue additional
warrants to the Lender concurrent with the advancement of Tranche B
funds entitling the Lender to purchase 7,142,857 common shares of the
Company at an exercise price equal to $0.35 per Share. The issuance of
Tranche A Warrants and Tranche B Warrants is subject to approval and
shall be made in accordance with the rules of the TSX Venture Exchange
including a hold period of 4 months from the date of issuance.
In addition, the Company shall provide security in favour of the Lender
over all the real and personal property of the Company. The Company may
pay up to 3% of the interest by way of quarterly share issuance at the
5 day VWAP preceding the interest payment date for the initial six
months.
The Company is also pleased to announce the commencement of Phase 1
drilling which consists of 6 wells drilled in the Fiske property. 3MV
plans to use Tranche A proceeds to finance Phase 2 drilling on 3MV's
Fiske property and targets to have approximately 16 new oil wells
drilled by the end of Q4 2014.
About 3MV
3MV is an oil and gas exploration and development company with assets
throughout west central Saskatchewan's Viking oil play.
The securities offered have not been and will not be registered under
the U.S. Securities Act of 1933, as amended, and may not be offered or
sold in the United States absent registration or applicable exemption
from the registration requirements. This news release does not
constitute an offer to sell or the solicitation of any offer to buy nor
will there be any sale of these securities in any province, state or
jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the securities
laws of any such province, state or jurisdiction.
Forward-Looking Statements
Certain statements in this news release constitute forward-looking
statements. The forward-looking statements contained in this document
are based on certain key expectations and assumptions made by 3MV.
Although 3MV believes that the expectations and assumptions on which
the forward-looking statements are based are reasonable, undue reliance
should not be placed on the forward-looking statements because 3MV can
give no assurance that they will prove to be correct.
Since forward-looking statements address future events and conditions,
by their very nature they involve inherent risks and uncertainties.
Actual results could differ materially from those currently anticipated
due to a number of factors and risks. These include, but are not
limited to, the failure to obtain necessary regulatory approvals, risks
associated with the oil and gas industry in general, commodity price
and exchange rate fluctuations and uncertainties resulting from
potential delays or changes in plans with respect to exploration or
development projects or capital expenditures. Readers are cautioned
that the foregoing list of factors is not exhaustive. Additional
information on these and other factors that could affect 3MV's
operations and financial results are included in reports on file with
Canadian securities regulatory authorities and may be accessed through
the SEDAR website (www.sedar.com).
The forward-looking statements contained in this document are made as of
the date hereof and 3MV undertakes no obligation to update publicly or
revise any forward-looking statements or information, whether as a
result of new information, future events or otherwise, unless so
required by applicable securities laws.
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.
SOURCE 3MV Energy Inc.
<p> </p> <p> Dallas Duce <br/> President & CEO<br/> (403) 234-8998 </p> <p> OR </p> <p> Billy Abbey <br/> CFO, VP Finance <br/> (403) 234-8998 </p>