News Column

Sefton Resources Shares Rise As It Makes Required Debt Payment

September 2, 2014

Sam Unsted

LONDON (Alliance News) - Sefton Resources Inc shares bounced on Tuesday after the firm said it made the required forebearance payment of USD148,000 along with interest payments to its bank, utilising loan funds provided by Hawker Energy LLC, a subsidiary of Sara Creek Gold Corp.

Forebearance is an agreement between a lender and a borrower to delay foreclosure.

Sefton shares were up 11% to 0.133 pence in early trade Tuesday, putting it among the top five risers on the AIM All-Share index.

In July, Sefton set up a forbearance agreement with Hawker, in which Hawker would finance its ongoing field operations with the expansion of its previously announced loan to USD1.5 million from USD1.0 million.

The deal followed an announcement in June when Sefton said that its bank agreed to an extension of final repayments until December 28, as long as Sefton made an immediate payment of USD360,000, monthly payments of USD100,000 plus interest at 8% beginning July 31 and payments of legal fees of USD20,000 per month during the forbearance period.

The oil and gas explorer, with operations in California and Kansas, said it continues to have discussions with Hawker over alternative financing to replace its bank commitments and complete a joint venture for the Tapia field in California.

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Source: Alliance News

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