NAEG Reports $5M Funding Deal
Native American Energy Group, Inc. on Thursday announced an MOU with a foreign investment group for a $5 Million ($5,000,000) funding on favorable terms. The funds are to be used for general well development, lease acquisition and operational purposes, and will be received by the end of January 2007. The Company currently has no debt. NAEG is a publicly traded, independent, energy company that recently commenced oil production in Northeast Montana.
The financial agreement which is the basis of the MOU was arranged by Joseph D'Arrigo, President & CEO, and Raj Nanvaan, Chief Financial Officer, after reviewing several other proposals. The interest rate on the note is eight percent (8%) due and payable at the end of the five-year term of the loan. The note is being collateralized with restricted shares of the Company's common stock with no conversion feature. Such shares will be returned upon repayment of the note after five years.
Raj Nanvaan stated, "We are pleased to be aligned with a group that has vast resources as well as a strong interest in our projects and also shares our belief in supporting the sovereignty and prosperity of Native American nations. We have diligently reviewed many proposals before moving with this group. This loan is a straight-forward loan with an interest rate that makes sense. They're accepting our restricted common stock as collateral for this loan. They are the first group that realized the real potential of this company and didn't approach us with some sort of convertible note deal or unethical equity offer. They're a group that looked upon us with true synergy and I can honestly say with sincerity, we look forward to a long and prosperous relationship with them."
CEO Joseph D'Arrigo added, "We also have our audited financial statements well underway to completion as we plan on filing a registration statement with the SEC next year to become a fully reporting company. Our financial statements are being prepared by the company's Certified Public Accountants, the Resnick Druckman Group out of New York. Our legal counsel, Wright Lindsey & Jennings LLP will be preparing the necessary registration statements for filing with the SEC."
- Native American Energy Updates Ops at Williston Basin (Oct 27)
- NAEG Reports $5M Funding Deal (Dec 14)