CALGARY, Aug. 1, 2013 /CNW/ - CMQ Resources Inc. (TSXV: NV) ("CMQ") announces that it has reached an agreement with Matco Investments Ltd. ("Matco") whereby Matco has agreed to lend up to $500,000 to CMQ on an unsecured basis (the "Loan"). The Loan is payable on demand and bears interest at a rate of 9% per annum. Following receipt of the Loan proceeds CMQ will be indebted to Matco and its affiliates in the aggregate amount of $6,814,098 as at July 31, 2013 comprised of $4,000,000 debentures plus accrued interest of $493,890, $1,000,000 secured advances, $999,663 unsecured advances, and accrued interest on secured and unsecured advances of $320,545.
Matco has previously agreed to forbear until October 20, 2013 from enforcing its rights and remedies against CMQ in respect of substantially all amounts for which CMQ was previously indebted to Matco. CMQ is currently exploring alternative financing possibilities in advance of the October 20, 2013 forbearance date though there can be no assurances that such additional financing will be available on economic terms, or at all. In the event that no such additional financing can be obtained, and Matco were to enforce its security, CMQ would be unable to continue its operations and to operate as a going concern. Matco is a private corporation controlled by Mr. Ronald Mathison, a director of CMQ. Matco is a control person of CMQ, holding approximately 49.99% of the issued and outstanding shares of CMQ. Neither the 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.
This press release contains certain forward-looking statements and forward-looking information (collectively referred to herein as "forward-looking statements") within the meaning of Canadian securities laws, including with respect to the availability of alternative financing and CMQ's future ability to carry on operations. All statements other than statements of historical fact are forward-looking statements. Forward-looking statements typically contain statements with words such as "anticipate", "believe", "plan", "continuous", "estimate", "expect", "intend", "may", "will", "shall", "project", "would", "should", or similar words suggesting future outcomes.
Undue reliance should not be placed on forward-looking statements, which are inherently uncertain, are based on estimates and assumptions, and are subject to known and unknown risks and uncertainties (both general and specific) that contribute to the possibility that the future events or circumstances contemplated by the forward-looking statements will not occur. There can be no assurance that the plans, intentions or expectations upon which forward-looking statements are based will in fact be realized. Actual results will differ, and the difference may be material and adverse to CMQ and shareholders. Forward-looking statements are based on management's current beliefs as well as assumptions made by, and information currently available to, management. Though management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks that forward-looking statements will not be achieved. The forward-looking statements contained in this press release are made as of the date hereof and CMQ does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, except as required by applicable law. The forward-looking statements contained herein are expressly qualified by this cautionary statement.
SOURCE CMQ Resources Inc.