M&A

2 November, 2009

UPDATE 1-Mart Resources says board begins strategic review

* Board move after stock buyers fail to pay cash

* Says repaid $3.5 mln bridge loan

Nov 2 (Reuters) - Canadian petroleum company Mart Resources Inc (MMT.V) said its board started a strategic review based upon its current financial position and ongoing operations after terminating a share sale deal as the buyers failed to pay up.

The company said it terminated an arrangement agreement with Westfield Exploration and Production Ltd and Westfield's Canadian unit as they failed to tender the cash payable for Mart's common shares under the deal.

Mart also said it repaid the outstanding principal amount of $3.5 million convertible bridge loan advanced to it in late May and early June.

Shares of the Calgary, Alberta-based company were down 1.5 Canadian cents at 8 Canadian cents Monday morning on the Toronto Venture Exchange. (Reporting by Koustav Samanta in Bangalore; Editing by Gopakumar Warrier)

Source: http://www.reuters.com