CALGARY,
Sept. 24, 2013 /CNW/ - CMQ Resources
Inc. (TSXV: NV) ("CMQ") announces that it has received a
notice of intention to enforce security (the "Notice") from
Matco Investments Ltd. ("Matco"). CMQ is currently
indebted to Matco and its affiliates in the aggregate amount of
$7,545,000 comprised of
$4,000,000 represented by outstanding
debentures plus accrued interest thereon of $544,000, $1,000,000 in respect of previous secured
advances, $1,650,000 unsecured
advances, and aggregate accrued interest on secured and unsecured
advances of $351,000.
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. The
Notice indicates that upon expiry of such forbearance period Matco
intends to enforce 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.
CMQ is currently exploring alternative financing
possibilities and strategic alternatives in advance of the
October 20, 2013 deadline though
there can be no assurances that such additional financing or any
viable alternative will be available on economic terms, or at
all. In the event that no such additional financing or viable
alternative can be obtained CMQ expects that it will be unable to
continue its operations and to operate as a going concern following
enforcement by Matco of its rights in respect of CMQ's outstanding
indebtedness. CMQ has established a Special Committee
comprised of Robert McKenzie as
Chairman and including Dr. Odin
Christensen.
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 alternative financing
or strategic alternatives 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.