Dejour Energy Inc. - 2011-08-04
Description
The company has signed a binding term sheet with a Canadian chartered bank for an initial C$7.0 million revolving credit facility at a bank rate of prime + 1%. Currently, that is 4% per annum.
The loan, subject only to the satisfaction of customary due diligence proceedings, will be utilized to retire the company's existing mezzanine facility of $4.3 million with its Alberta-based lender as well as provide low cost working capital to expand the company's reserve base.