Letho Resources Corp. (TSXV:LET) has signed a letter of intent with Stream Oil & Gas Ltd. (TSXV:SKO) whereby Letho has agreed to loan Stream up to C$5,000,000 which loan will be supported by the issuance of a convertible debenture to Letho. Subject to TSX Venture Exchange approval and entry into a definitive agreement, Letho will advance the loan in two separate tranches, with the first tranche amounting C$2.0 million and the second tranche amounting to C$3.0 million. The dates on which both tranches will be advanced are to be set out in the definitive agreement.
As quoted in the press release:
Under the terms of the convertible debenture set out in the definitive agreement, and are expected to include Stream’s option to convert the Letho debenture into common shares of Stream. Stream may also prepay the debenture, in whole or in part, at any time without notice, bonus or penalty.