WesternZagros Resources Ltd. has closed its previously announced financing with Crest Energy International LLC (Crest) whereby Crest has purchased from WesternZagros, through a non-brokered, private placement, 51,000,000 Common Shares of the Company at a price of Cdn$1.25 per share for gross proceeds of $63.75 million. Crest now holds approximately 19.8 percent of the Company's issued and outstanding Common Shares. The Common Shares issued to Crest are subject to a contractual hold period until July 19, 2013, pursuant to the terms of the investment agreement (the "Agreement") entered into between the Company and Crest on March 10, 2013, as well as a statutory hold period of the same length.

In addition, pursuant to a restated and amended senior secured loan agreement (the "Loan Agreement") between the parties, Crest has advanced to the Company US$57.5 million (approx. $59.2 million) (the "Loan"). The Loan will accrue interest at the rate of 6 percent per annum and is secured by 10 percent of the outstanding shares of WesternZagros's operating subsidiary. The Loan, together with all accrued interest, is to be repaid in full on September 30, 2014, subject to certain prepayment terms, including but not limited to certain repayment obligations in the event of future equity offerings by the Company.

Tags: WesternZagros Resources Ltd.