Some weeks ago, the Nevada-based oil and gas company JMG Exploration, Inc. announced termination of the share exchange with British Virgin Islands-registered Newco Group Ltd. The BVI company had failed to repay a $3 million loan and accrued interest that was due December 31, 2007, and the termination was effective from that date.
JMG Exploration has already updated the status of defaulted loan to the BVI company. Now, JMG announced that on February 8 it entered into an extension agreement allowing Newco to repay the loan and accrued interest until April 30, 2008. If the note is not paid by that time, Newco agreed to have the 1,427,684 shares of Iris which secure the loan immediately transferred to JMG as payment in full of the outstanding obligations.
In the current status update, JMG Exploration informed that both companies have also released each other from any liabilities resulting from the failure of the Share Exchange Agreement to be consummated. The US company also reported that the Fellows project was sold effective January 31, 2008, for approximately $385,000.