CALGARY,
Nov. 5, 2013 /CNW/ - CMQ Resources
Inc. (TSXV: NV) ("CMQ") is providing an update regarding the
previously announced receipt of a notice of intention to enforce
security (the "Notice") from Matco Investments Ltd.
("Matco"). On September 24,
2013 CMQ announced that it was 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 and had received
a notice from Matco of its intention to enforce its security.
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. Such
forbearance period has now expired and Matco is currently both
entitled and able to enforce on 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 engaged in discussions with
Matco in an effort to attempt to negotiate the potential further
forbearance of enforcement on its indebtedness and additional
financing. There can be no assurances that such additional
forbearance or any viable financing will be obtained. In the
event that no such additional forbearance or financing from Matco
can be obtained, CMQ expects that it will be unable to continue its
operations and to operate as a going concern.
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 continued forbearance
and financing from Matco 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.