Underground Energy announces close of convertible debenture
financing and change of Board member
/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR
DISSEMINATION IN THE UNITED
STATES/
TORONTO,
Dec. 3, 2012 /CNW/ - Santa Barbara, California - Underground Energy
Corporation ("Underground" or the "Company") (TSXV: UGE); (OTCQX:
UGGYF) announced today the closing of its convertible debenture
financing at $911,000 and a change in
one Board member.
Convertible Debenture Financing
Due to volatile and difficult market conditions, Underground has
not been able to close on significant additional capital at this
time in its previously announced convertible debenture financing of
up to $US 6 million. It has closed on
a further $220,000 with two officers
and this will be the final close in this financing. This
amount is in addition to the $691,000
previously closed.
In order to rectify its working capital deficit,
full details of which have been disclosed in the press release
dated November 29, 2012, the Company,
together with the Board, is exploring all available options,
including alternative financing solutions and strategic initiatives
with industry and other participants. In the meantime, the Company
continues to reduce its monthly costs to allow it to continue to
pursue all available options.
Change in Board Members
Underground announces the resignation from its Board of Directors
by Randolph Aldridge, as he intends
to pursue other business opportunities. Peter Ballachey, currently Underground's Chief
Financial Officer and Corporate Secretary, has been appointed to
replace him.
"The Company expresses its deep appreciation for
the wisdom and guidance provided by Mr. Aldridge over his five
years on our Board. We will miss Randy and wish him success in all
his future endeavors," said Mike
Kobler, President and CEO of Underground.
About Underground Energy Corporation
Underground is focused on developing its Zaca, Burrel and Asphaltea assets in Santa Barbara County, California, including
through joint ventures and industry farm-ins as appropriate.
In total, Underground currently holds mineral rights on
approximately 64,000 net acres of prospective lands in California and Nevada with an initial focus on the Monterey
Shale in California. For more
information on Underground, please visit www.ugenergy.com.
Underground's regulatory filings are available under the Company's
profile at www.sedar.com.
This press release is not an offer of securities
for sale in the United States. The
securities referred to above have not been and will not be
registered under the United States Securities Act of 1933, as
amended, and accordingly may not be offered or sold in the United States unless registered under that
Act or pursuant to an available exemption from the registration
requirements thereof.
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.
SOURCE Underground Energy Corporation
