/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
CALGARY, Oct. 13 /CNW/ - ProspEx Resources Ltd. ("ProspEx") today announced that it has closed its previously announced financing pursuant to which ProspEx issued 3,143,000 common shares on a flow-through basis (the "Flow-Through Shares") at a price of $1.75 per Flow-Through Share for gross proceeds of approximately $5.5 million (the "Offering").
The underwriting syndicate for the Offering was led by Cormark Securities Inc. and included Peters & Co. Limited, CIBC World Markets Inc., Stifel Nicolaus Canada Inc. and Wellington West Capital Markets Inc.
ProspEx will use the proceeds from the Offering to fund ongoing exploration activities eligible for "Canadian Exploration Expenses" for the purposes of the Income Tax Act (Canada) by or before December 31, 2011. Such qualifying expenditures will be renounced to subscribers of the Flow-Through Shares effective on or before December 31, 2010.
Immediately following the closing, ProspEx had 60,533,162 common shares issued and outstanding.
ProspEx Resources Ltd. is a Calgary-based junior oil and gas company focused on exploration for natural gas in the Western Canadian Sedimentary Basin.
Reader's Advisory
This press release contains forward-looking statements and forward-looking information within the meaning of applicable Canadian securities legislation (collectively, "forward-looking statements"). Specifically, this press release contains forward-looking statements relating to the use of proceeds of the Offering and the renunciation of Canadian Exploration Expenses. The forward-looking statements are based on certain key expectations and assumptions made by ProspEx, including assumptions concerning the timing of obtaining regulatory approvals and the state of the economy and the exploration and production business, which expectations and assumptions management of ProspEx believes to be reasonable at this time. Although ProspEx believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable at the date of this press release, undue reliance should not be placed on the forward-looking statements and information as ProspEx can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. The forward-looking statements contained in this press release are made as of the date hereof and ProspEx undertakes no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
The Toronto Stock Exchange has neither approved nor disapproved the contents of this press release.
%SEDAR: 00021285E
For further information: please contact John Rossall, President & Chief Executive Officer or George Yee, Vice President Finance and Chief Financial Officer, [email protected] or 403-268-3940
Share this article