WesternZagros Resources Ltd. has entered into an investment agreement (the "Investment Agreement") with Crest Energy International LLC (Crest). Under the Investment Agreement, Crest will purchase, through a non-brokered private placement, 51,000,000 Common Shares in the Company at $1.25 per share for gross proceeds of $63.75 million (the "Private Placement").
This price represents an approximate 25 percent premium to the March 8, 2013 closing share price of $1.00. Crest currently holds 9.9% of the issued and outstanding Common Shares and following completion of the Private Placement will hold approximately 19.8%.
In addition, WesternZagros and Crest have entered into a senior secured loan agreement (the "Loan Agreement") pursuant to which Crest has agreed to loan to WesternZagros US$57.5 million (approx. $59.2 million) (the "Loan").
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WesternZagros Resources Ltd.
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