CALGARY,
April 2, 2014 /CNW/ - CMQ Resources
Inc. (TSXV: NV) ("CMQ") is providing an update regarding the
previously announced receipt of a notice of intention to enforce
security (the "Notice") from Matco Investments Ltd.
("Matco"). On September 24,
2013 CMQ announced that it was indebted to Matco and its
affiliates in the aggregate amount of $7,545,000, comprised of: (i) $4,000,000 represented by outstanding debentures
plus accrued interest thereon of $544,000; (ii) $1,000,000 in respect of previous secured
advances; (iii) $1,650,000 unsecured
advances; and (iv) aggregate accrued interest on secured and
unsecured advances of $351,000, and
had received a notice from Matco of its intention to enforce its
security.
On November 5, 2013
CMQ issued a press release indicating Matco had previously agreed
to forbear until October 20, 2013
from enforcing its rights and remedies against CMQ in respect of
substantially all amounts for which CMQ was previously indebted to
Matco. Such forbearance period has elapsed and Matco
currently remains both entitled and able to enforce on its existing
security and pursue such other remedies as may be available to
Matco in connection with the satisfaction and repayment of all
outstanding amounts owed by CMQ. As at March 31, 2014 CMQ is indebted to Matco and its
affiliates in the aggregate amount of $8,434,115, comprised of: (i) $4,000,000 represented by outstanding debentures
plus accrued interest thereon of $733,562; (ii) $1,000,000 in respect of previous secured
advances; (iii) $2,199,663 unsecured
advances; and (iv) aggregate accrued interest on secured and
unsecured advances of $500,890.
CMQ continues to engage in discussions with Matco
in an effort to attempt to negotiate the potential further
forbearance of enforcement on its indebtedness and additional
financing required in connection with its existing projects.
There can be no assurances that such additional forbearance or any
viable financing will be obtained. In the event that no such
additional forbearance or financing from Matco can be obtained, CMQ
expects that it will be unable to continue its operations and to
operate as a going concern.
Matco is a private corporation controlled by Mr.
Ronald Mathison, a director of
CMQ. Matco is a control person of CMQ, holding approximately
49.99% of the issued and outstanding shares of CMQ. Neither
the TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this
release.
Forward-Looking Statements
This press release contains certain
forward-looking statements and forward-looking information
(collectively referred to herein as "forward-looking
statements") within the meaning of Canadian securities laws,
including with respect to the availability of continued forbearance
and financing from Matco and CMQ's future ability to carry on
operations. All statements other than statements of historical fact
are forward-looking statements. Forward-looking statements
typically contain statements with words such as "anticipate",
"believe", "plan", "continuous", "estimate", "expect", "intend",
"may", "will", "shall", "project", "would", "should", or similar
words suggesting future outcomes.
Undue reliance should not be placed on
forward-looking statements, which are inherently uncertain, are
based on estimates and assumptions, and are subject to known and
unknown risks and uncertainties (both general and specific) that
contribute to the possibility that the future events or
circumstances contemplated by the forward-looking statements will
not occur. There can be no assurance that the plans, intentions or
expectations upon which forward-looking statements are based will
in fact be realized. Actual results will differ, and the difference
may be material and adverse to CMQ and shareholders.
Forward-looking statements are based on management's current
beliefs as well as assumptions made by, and information currently
available to, management. Though management considers these
assumptions to be reasonable based on information currently
available to it, they may prove to be incorrect. By their very
nature, forward-looking statements involve inherent risks and
uncertainties, both general and specific, and risks that
forward-looking statements will not be achieved. The
forward-looking statements contained in this press release are made
as of the date hereof and CMQ does not undertake any obligation to
update publicly or to revise any of the included forward-looking
statements, except as required by applicable law. The
forward-looking statements contained herein are expressly qualified
by this cautionary statement.
SOURCE CMQ Resources Inc.