Greenfields Petroleum Corporation has secured a US$25 million loan facility (Loan) through an arm's length third party (the "Lender"). The funds available under the Loan are intended to be used primarily to finance the Company's ongoing development operations in Azerbaijan as it relates to the Gum Deniz Oil Field and Bahar Gas Field.
Pursuant to the terms of the loan agreement (the "Loan Agreement") dated November 25, 2013 among the Lender, the Company, Greenfields Petroleum Holdings Ltd. and Greenfields Petroleum International Company Ltd., as guarantors ("Guarantors"), the Company is entitled to draw up to an aggregate of US$25 million in tranches based upon the achievement of certain operational milestones, as set forth in the Loan Agreement. The amount drawn under the Loan bears interest at a rate of between 15% and 20%. The Loan has a maturity date of December 31, 2015. The Loan is subject to a 2.5% cash structuring fee payable on each tranche advance in accordance with the Loan Agreement.