No. 04-SGV-02
ST. GENEVIEVE RESOURCES LTD.
ME/TSE : SGV
CDN : SGVE
ST. GENEVIEVE REACHES AGREEMENT WITH GENOIL
MONTREAL, QUEBEC - February 13, 1998 - St. GeneviŠve Resources Ltd. ("SGV") has reached an agreement with Genoil Inc. ("Genoil") for the repayment of the $5.2 million debt (the "Debt") owed by SGV. The Debt will bear interest at prime plus 1% and all outstanding principal will be due and payable in full no later than April 1, 1999. The Debt will be guaranteed by 5.28 million shares of Genoil owned by SGV.
This agreement, subject to a due diligence, has been arrived at in the context of a refinancing of Genoil through a major equity investment by an arm's length independent oil and gas company by way of a share subscription for 16,845,501 shares of Genoil at a price $0.20 per share, for total proceeds of $3,669,100.20. In connection with this refinancing, SGV has granted the investor an 18 month option to purchase the 5.28 million shares of Genoil owned by it at a price of $1.00 per share, although SGV shall retain the right to sell such shares on the market, at a minimum price of $1.00 per share. In all cases, the proceeds of such sale will be applied towards the repayment of the Debt.
Furthermore, SGV and a second industry partner have reached an agreement with Genoil whereby they could earn the following farm-in rights :
I. the right to earn up to a 35% interest in Blocks 19 and 20, in consideration of the payment of up to 35% of historical costs on such Blocks; and
II. the right to earn up to a 10% interest in Blocks V, VI and VII, in consideration of the payment of up to 20% of the cost of a new well to be drilled on such Blocks.
This transaction is subject to the approval of regulatory authorities and other interested parties.
SGV is a mining exploration company currently trading (without quotation) on the Canadian Dealing Network under the symbol SGVE.
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Information : Jacques Rossignol
Lapointe Rosenstein
Tel : (514) 925-6336
NO REGULATORY AUTHORITY HAS APPROVED NOR DISAPPROVED
THE CONTENT OF THIS PRESS RELEASE
** restructuring plan to be voted upon by creditors on February 26,1998 in Montreal. |
