CGX Energy Announces US$2.5 Million Loan Agreement

Core Viewpoint - CGX Energy Inc. has secured a US$2.5 million Senior Secured Loan Facility from Frontera Energy Corporation to finance its operational costs related to the Corentyne block offshore Guyana [1]. Group 1: Loan Details - The loan will be available for drawdown in tranches over a six-month period, with a maximum drawdown of US$1.9 million per tranche and a total cap of US$2.5 million [2]. - The loan is due one year after the date of issuance, with an interest rate of 19.32% per annum, compounded monthly [2]. Group 2: Regulatory and Compliance Aspects - The loan is subject to customary conditions, including obtaining regulatory approvals [3]. - The transaction is classified as a related party transaction but is exempt from formal valuation and minority shareholder approval requirements [3]. Group 3: Company Overview - CGX Energy Inc. is focused on oil exploration in the Guyana-Suriname Basin and is also developing a deep-water port in Berbice, Guyana [4].