PanTerra Closes First Tranche of Asset Sale

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PanTerra Resource Corp. (PRC.V) announces that it has closed the first tranche of an asset sale at its Carrot Creek property that was previously announced on June 4, 2013.

The first tranche consists of the sale of 60% of the Proven Producing Reserve asset for a price $1,096,688.

Transaction metrics of the Proven Producing portion of the sale is $45,700 per flowing barrel. This is based on 60% of the current proven producing rate of 40 BBls per day (net 24 BBls per day).

The proceeds of the disposition will be applied to reduce indebtedness under PanTerra's current credit facilities.

The second tranche for 60% of the probable reserves and facilities is expected to close on or before July 22, 2013 and will be used to further retire debt and for go-forward projects.

The Transaction involves a non-arm's length party as Geoffrey Baker is a director of the both the vendor and the purchaser. The Company has received conditional approval of the TSXV for this transaction.

Pan Terra also announces that as a result of the disposition and with the retirement of a major portion of debt it anticipates that a reduction in its revolving line will take place and is in ongoing negotiations with its banker to determine the new terms.

Pan Terra is just above a yr low of 3 cents.



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This article appears in: Investing , Commodities

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