Company: FECOF
Filing Date: 2025-07-15
Form Type: 20-F
Source: 0001477932-25-005053
Chunk: 4

Company: FEC Resources Inc.
Filing Date: 2025-07-15
Form: 20-F
Item: Item 3
Chunk 4
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 2022, we announced that we agreed to fund an additional cash call for pre-drilling costs received from FEL in the amount of $198,620, bringing the total to $423,020, which included $224,400 advanced in 2020. The advance to FEL was via non-interest bearing loans. In order to be able to fund the $198,620, the Company accepted a PXP Loan.

On October 31, 2023 and November 29, 2023, we advanced $68,000 and $136,000, respectively, to FEL representing 6.8% of a $3,000,000 financing being undertaken by FEL, bringing the total advances by us to $627,020. The funds to participate in the financing were obtained via further PXP Loans.

The PXP Loan bears interest of LIBOR plus 3.5% and both interest and principal are repayable on the earlier of: (a) August 31, 2025, (b) any equity issuance by us, (c) any sale of FEL shares by us, or (d) any third party borrowing by us. We also received an additional $155,286 for working capital from PXP during the year ended December 31, 2024 (2023 - $356,500; 2022 - $80,000 under the same terms and conditions as the PXP Loan. As at December 31, 2024, the outstanding PXP Loan balance was $895,637 (2023 - $678,155), which included accrued interest of $105,431 (2023 - $43,235; 2022 - $10,642). Total interest expense amounted to $62,196 for the year ended December 31, 2024 (2023 - 32,593; 2022 - 10,642).

On December 21, 2023, $626,820 of advances made to FEL by us were converted to shares in FEL at a price of US$0.30 per share. The $626,820 conversion into FEL shares represented 6.8% of $9,217,939 of debt settled by FEL. The balance of $200 from the advances was assumed by PXP.

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Should FEL require additional financing requiring us to advance funds in order to maintain our 6.8% interest, there is no guarantee that can