China's Shouyang CBM Operator FEEC Enters Into $4M Loan Facility Agreement
Far East Energy Corporation, the U.S. listed company that operates the Shouyang Coalbed Methane (CBM) Production Sharing Contract (PSC) in China's Shanxi Province, announced Monday that Far East Energy (Bermuda), Ltd. (FEEB), a wholly owned subsidiary of Far East Energy Corporation (the Company), has entered into a $4 million Term Loan Facility Agreement (TLFA), effective June 26, with the lenders party thereto; and, further announces that an extension of the maturity date of the existing $1.4 million Original Term Loan Facility Agreement (OTLFA) that FEEB entered into on Feb. 24 with the lenders party thereto.
The new TLFA matures Oct. 8 and provides for an aggregate principal amount of $4 million to be borrowed, subject to the terms, conditions and repayment obligations of the TLFA. No stock, warrants or other equity securities will be issued to the lenders in connection with the TLFA. Net proceeds from the TLFA will be utilized for certain working capital purposes as required by the TLFA. The majority of the net proceeds are targeted to cover certain operational expenses and payables as the Company continues to work through strategic discussions.
Further, the maturity date of the $1.4 million OTLFA has been extended to July 27 from its previous maturity date of June 26.
Far East Energy Corporation will continue to advise its shareholders at appropriate times, and with appropriate details, as developments progress.
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