Closing of First Tranche of Private Placement and Amendment Agreement With Kreyenhagen JV Partner
February 03 2014 - 8:30AM
Marketwired
Closing of First Tranche of Private Placement and Amendment
Agreement With Kreyenhagen JV Partner
MELBOURNE, AUSTRALIA--(Marketwired - Feb 3, 2014) - Solimar
Energy Limited ("Solimar" or the "Company")
(ASX:SXS)(TSX-VENTURE:SXS) is pleased to announce that it has
completed a first tranche of a non-brokered private placement for
aggregate gross proceeds of C$250,000 via the issuance of Units at
a price of C$0.065 per Unit. Each Unit is comprised of one common
share and one half of one right. Each right entitles the holder to
acquire a warrant upon shareholder approval of the conversion of
the rights to warrants. Assuming shareholder approval is obtained,
each warrant will allow the holder to purchase one common share of
the Company at a price of C$0.065 for a 24 month period following
closing.
The securities issued pursuant to the private placement are
subject to a four month statutory resale restriction.
The Company intends to hold a shareholder meeting before the end
of March 2014 in order for, among other things, shareholders to
vote on, and if deemed appropriate, to approve the conversion of
the rights to warrants.
The Company intends to complete a further placement in the
upcoming week for an amount up to C$363,600 and the remainder of up
to an aggregate of C$2,000,000 following shareholder approval of
the remainder of the placement pursuant to ASX rules.
The private placement is subject to final TSX Venture
acceptance.
The Company also has entered into an amending agreement with its
joint venture partner ("JV Partner") in the Kreyenhagen Heavy Oil
Project, in California.
Following the LOI announced on December 23, 2013, the amending
agreement reduces the JV Partner's Farm-in commitment to $1.8
million with a proportional reduction in the earned Working
Interest from 15% to 13.5 % and confirms that the JV Partner will
not participate in a second farm-in phase to earn additional rights
or working interest.
The JV Partner will participate in the ongoing testing and
capital program within the Heavy Oil Project at the Company's
working interest of 13.5%. This program includes testing planned
for the 2-33 well drilled under the joint venture and the drilling
and coring of a vertical well, subject to a successful completion
of the proposed financing.
Solimar Energy Limited
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Reader Advisory: Forward-looking statements
This news release contains forward-looking information relating
to the private placement, planned development and exploration
activities on the properties in which the Company has interests,
and other statements that are not historical facts. Such
forward-looking information is subject to important risks,
uncertainties and assumptions. The results or events predicated in
this forward-looking information may differ materially from actual
results or events. As a result, you are cautioned not to place
undue reliance on this forward-looking information.
Forward-looking information is based on certain factors and
assumptions. While the Company considers these assumptions to be
reasonable based on information currently available to it, they may
prove to be incorrect.
Forward looking-information is subject to certain factors,
including risks and uncertainties that could cause actual results
to differ materially from what is currently expected. These factors
include risks associated with the private placement, risks
associated with instability of the economic environments in which
the Company operates or owns interests, oil and gas exploration,
development, exploitation, production, marketing and
transportation, loss of markets, volatility of commodity prices,
currency fluctuations, imprecision of reserve estimates,
environmental risks, competition from other producers, inability to
retain drilling rigs and other services, incorrect assessment of
the value of acquisitions, failure to realize the anticipated
benefits of acquisitions, delays resulting from or inability to
obtain required regulatory approvals and ability to access
sufficient capital from internal and external sources, reliance on
key personnel, regulatory risks and delays, including risks
relating to the acquisition of necessary licenses and permits,
environmental risks and insurance risks.
You should not place undue importance on forward-looking
information and should not rely upon this information as of any
other date. While the Company may elect to, the Company is under no
obligation and does not undertake to update this information at any
particular time, except as required by law.
Solimar Energy LimitedJason BednarDirector+1 805 643 4100 or
(03) 9347 2409www.solimarenergy.com.au