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funding in place

  1. towie

    28,865 Posts.

    Secures Funding

    Document date: Mon 13 Jan 2003 Published: Mon 13 Jan 2003 08:48:49
    Document No: 230603 Document part: A
    Market Flag: Y
    Classification: Placement

    HOMEX - Perth

    Kalrez advises it has finalised negotiations and has agreed with the
    South Australian investment company Tulloch Lodge Limited ("Tulloch")
    to provide a funding combination of two (2) million dollars.

    The agreed funding combination is in two (2) parts:-


    Tulloch has agreed to subscribe for 100 million Kalrez fully paid
    shares at a price of 0.50 cent equal to $500,000.00. This agreement
    is not subject to any fee obligation.

    The proceeds from the share subscription shall be used to retire
    loans and satisfy all current Australian creditors.

    On completion of this task the company shall be left with
    approximately $200,000.00 in working capital. This shall ensure that
    all funding in place for Kalrez's Indonesian based activities do not
    suffer any disruption by demands for Australian funding.

    Russell Brimage the Kalrez Indonesian based executive director, says
    this will give him and his staff great relief.

    Kalrez advises, the present Indonesian funding arrangements in place
    are more than adequate until the company is in receipt of the
    December Bula oil lifting funds totalling US $1.22 million or
    approximately A $2.0 million dollars.


    Tulloch has agreed to loan the company a further A $1.5 million
    dollars in the form of a loan facility.

    The loan facility is for 18 months, interest rate 8% on monies
    drawn down, Tulloch will receive a facility fee of 20 million shares,
    the company took this action to conserve cash.

    The loan facility, is on a draw down of $250,000.00 stack basis, and
    will be dedicated to funding the Seram JV cash calls.

    It has been agreed the first draw down of approximately A $750,000.00
    will be on the 31st January 2003.

    These funds shall be to retire all default cash calls and associated
    default interest demands. The balance of the funding shall be to
    satisfy further Seram JV cash calls.

    Persal and Company have also consented to make available the earlier
    announced A $250,000.00 loan facility on a need basis until 31st
    March 2003.

    All the facilities give the company confidence and a "good feeling"
    for the future and shall along with the positive cash flows from Bula
    and the Oseil projects shall be a comfort, from the sudden dread of
    going from one default notice to another and still trying to survive.

    The real big plus out of the funding will be, it puts Kalrez on good
    standing with the Seram JV operator Kufpec (Indonesian) Limited

    This will position the company in its own right to seek Kufpec's
    authorisation to investigate other opportunities on the Seram
    Contract Block as a partner of good standing.

    Opportunities include the possibilities of a number of sole risk
    targets that Kufpec may disregard because of their size but would be
    ideal for a company of Kalrez size.

    Eddie Smith the company's chairman states, with this funding from
    (Tulloch) in place and including the December Bula lifting of
    approximately A$2.0 million plus the recent Oseil wells coming on
    stream the company has turned the corner and Kalrez shareholders can
    now look forward to a real future for the company.

    For further information please contact Mr E Smith (Telephone: 08 9362
    9330 or Fax: 08 9362 9331).

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