Post by ToddCT on May 24, 2005 13:14:32 GMT -5
Silver Star Cancels Financing Agreement With Cornell Capital
LOS ANGELES, CA, May 24, 2005 (MARKET WIRE via COMTEX) -- Silver Star Energy, Inc. (OTC BB: SVSE) today announces that the Company has cancelled the financing agreement with Cornell Capital Partners, LP. Silver Star has received from Cornell one half of a secured $1.5 million bridge loan totaling $750,000 in December 2004. This loan was provided as part of a convertible debenture that could be paid back in cash or converted to stock.
Silver Star has informed Cornell of its intention to repay the loan in cash with interest and penalty as opposed to converting to common shares. This action will prevent any further dilution to the current issued and outstanding shares. The cash payback will occur from proceeds of cash flow from Silver Star's North Franklin and Joarcam projects.
In addition, Silver Star will not be proceeding with the Standby Equity Distribution Agreement ("SEDA") that committed Cornell to provide up to an additional $10 million of funding to Silver Star over a 24-month period.
Silver Star has alternative financing committed to replace the Cornell funds and will access it when required funds for development exceed cash on hand from production revenue.
ABOUT SILVER STAR ENERGY, INC.
The Company is committed to the exploration and extensive development of oil and natural gas reserves throughout western North America. Company management is focused on an acquisition program targeting high quality, low risk prospects provided via key strategic alliance partnerships.
Safe harbor for Forward-Looking Statements:
LOS ANGELES, CA, May 24, 2005 (MARKET WIRE via COMTEX) -- Silver Star Energy, Inc. (OTC BB: SVSE) today announces that the Company has cancelled the financing agreement with Cornell Capital Partners, LP. Silver Star has received from Cornell one half of a secured $1.5 million bridge loan totaling $750,000 in December 2004. This loan was provided as part of a convertible debenture that could be paid back in cash or converted to stock.
Silver Star has informed Cornell of its intention to repay the loan in cash with interest and penalty as opposed to converting to common shares. This action will prevent any further dilution to the current issued and outstanding shares. The cash payback will occur from proceeds of cash flow from Silver Star's North Franklin and Joarcam projects.
In addition, Silver Star will not be proceeding with the Standby Equity Distribution Agreement ("SEDA") that committed Cornell to provide up to an additional $10 million of funding to Silver Star over a 24-month period.
Silver Star has alternative financing committed to replace the Cornell funds and will access it when required funds for development exceed cash on hand from production revenue.
ABOUT SILVER STAR ENERGY, INC.
The Company is committed to the exploration and extensive development of oil and natural gas reserves throughout western North America. Company management is focused on an acquisition program targeting high quality, low risk prospects provided via key strategic alliance partnerships.
Safe harbor for Forward-Looking Statements: