CALGARY, ALBERTA--(Marketwire - Nov. 24, 2011) - Detector Exploration Ltd. ("Detector") (TXS VENTURE:DEX) announces that Detector has approved the borrowing of an additional $125,000 from 2 directors of Detector, Edward A. James and Ronald E. Alexander. Edward A James and Ronald E. Alexander are both "related party" to Detector because they are both directors of Detector. Ronald E. Alexander is also President and CEO of Detector. The loans by Ronald E. Alexander ($25,000) and Edward A. James ($100,000) are both unsecured loans, are not convertible into shares or other securities of Detector and bear interest at 10% per annum, which terms the Board of Directors of Detector has concluded constitute commercial terms that are not less advantageous to Detector than if the loan or credit facility were obtained from a person dealing at arm's length with Detector.
As Ronald E. Alexander is President, C.E.O. and Director of Detector, and Edward A. James is a Director of Detector, the borrowing of the loan from Ronald E. Alexander and Edward. A. James is a "related party transaction" within the meaning of Multilateral Instrument 61-101 (incorporated by reference into TSX-V Policy 5.9). As a related party transaction, the following additional disclosures are provided (following the listing of disclosures in Section 5.2 of MI 61-101). As the extension of the loan does not result in a material change for Detector no Material Change Report has been filed.
The purpose of the loan from the perspective of Detector is to provide Detector with capital needed to repay third party loans that were due and payable on September 30, 2011. Alternative funding was not available. Since these loans were used to payout existing loans, little effect on Detector's business and affairs is expected from the loans.
Each of Edward A. James and Ronald E. Alexander will be entitled to receive interest and return of the principal in priority to shareholders.
The review and approval process that has been adopted by Detector for this transaction is as follows:
Detector is an oil and gas corporation whose shares are listed for trading on TSX Venture Exchange Inc. under the symbol DEX.
As of November 24, 2011 Detector has outstanding 11,918,701 Common Shares. Detector does not currently have any outstanding options, warrants or convertible securities that could result in the issuance of additional Common Shares.
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
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