Stetson Oil & Gas Ltd. has received a bridge loan in the principal amount of C$2,139,720, the proceeds of which are to be used to make a payment of an equal amount to complete the lease of 2,881 gross acres of Bakken prospective lands in North Dakota for which the Company has received final registration approval from the Bureau of Indian Affairs.
Stetson has now paid for and taken up leases on 5,313 gross acres of land. Stetson will pay 80% of these costs for a 70% interest in the leases and lands. The bridge loan is evidenced by a debenture issued by the Company, with the amount outstanding to accrue interest at a rate of 12% per year, mature in 30 days and be secured against the assets of the Company.
The Company intends to use a portion of the net proceeds from its recently announced private placement to repay this debenture.
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