Azabache Energy Inc. (TSXV:AZA) annnounced that it has entered into an agreement to receive a senior unsecured interest-bearing loan for gross proceeds of CAD 3,500,000 on December 15, 2014. Fenix Partners will act as placement agent to the company.

On December 30, 2014, the company announced that he loan will bear interest at 4% per annum and will have a term of 18 months from the date of issuance. The loan will carry a face value of CAD 2,311,250 and will be raised at a discount of 6.98% of the face value. The transaction will involve participation from arm's length and non-arm's length parties. The company has a right of prepayment of the loan. The company will also issue 9,245,000 bonus shares to the lenders in connection with the transaction. The lenders will receive four bonus shares for advancing CAD 1 to the company as part of the loan.