Sahara Announces Creditor Proposal, Consolidation and Recapitalization

Sahara Energy Ltd. (TSX VENTURE:SAH) (PINK SHEETS:SAHRF)announced that it has entered into a Memorandum of Understanding with King World International Holdings Limited.

The press release is quoted as saying:

The MOU provides for a proposal to be made and accepted by creditors of Sahara (the “Creditors Proposal”), a 6 for 1 consolidation of the common shares (the “Common Shares”) of Sahara (the “Share Consolidation”) and an equity private placement of up to 58,000,000 Common Shares on a post-consolidation basis (the “New Shares”) at a price of $0.05 per Common Share for gross proceeds to the Company of up to $2.9 million (the “Private Placement”).

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