Mart Resources, Inc. says that Mart and Delta Oil Nigeria B.V. (Delta) have jointly agreed, pursuant to the terms of an amending agreement (the "Amending Agreement") to amend the terms of the arrangement agreement dated October 16, 2015 (the "Arrangement Agreement") in order to provide Delta with additional time to satisfy the financing condition (the "Financing Condition") contained in the Arrangement Agreement. Delta is providing significant equity to the proposed purchase of Mart common shares pursuant to the proposed plan of arrangement but has been sourcing funding for a portion of the purchase price from traditional bank financing.
However, as most of Mart's free cash flow is currently being applied towards servicing bank debt due to the depressed oil price, Delta has advised that additional bank funding cannot be obtained until there is an increase in oil price or a change to Mart's borrowing terms. Accordingly Delta will seek alternative sources of funds that will not require debt servicing to satisfy the Financing Condition. The consideration to be paid to Mart shareholders remains unchanged at CAD$0.35 for each Mart common share held for aggregate consideration for all of Mart's current shares of approximately CAD$124.92 million.