VANCOUVER, Feb. 10, 2017 /CNW/ - PMI Resources Ltd.
("PMI" or the "Company") (TSXV: PMI), is
pleased to advise that the Company and PentaNova Energy Corp.
("PentaNova") have closed a private placement financing in
the aggregate amount of C$45,000,000.
The Company is also pleased to provide an update on its proposed
acquisition (the "Acquisition") of PentaNova Energy Corp.
("PentaNova"), as announced on January 25, 2017.
The brokered private placement conducted through GMP Securities
L.P. and Eventus Capital Corp. for gross proceeds of C$16,400,000 to PentaNova closed on January 31, 2017. PentaNova also completed
a non-brokered private placement for gross proceeds of C$23,820,780. In addition, PMI closed the
non-brokered financing through the issuance of 9,561,000
subscription receipts of PMI for gross proceeds of C$4,780,500 (the "PMI Proceeds").
The PMI Proceeds are being held in escrow pending closing of the
Acquisition. The common shares in the capital of PMI issuable on
conversion of the subscription receipts will be subject to a four
month hold period expiring June 9,
2017.
PentaNova has entered into definitive agreements to acquire an
80% interest in the Maria Conchita Block, an 80% interest in the
SN- 9 Block and a 60% interest in the Tiburon Block, all onshore in
northern Colombia (collectively,
the "Block Acquisitions").
"We are extremely pleased with the success of the private
placement financings and with our ability to secure such high
quality assets. We look forward to closing of the Acquisition
and our next steps in the development of these assets," commented
Luciano Biondi, Chief Executive
Officer of PentaNova.
About PentaNova
PentaNova, a private corporation incorporated under the laws of
the British Virgin Islands, is an
exploration and development company focused on oil and gas plays in
South America. PentaNova has
acquired an 80% beneficial working interest in the Maria Conchita
Block, onshore Colombia;
(ii) an 80% beneficial working interest in the SN-9 Block,
onshore Colombia; and (iii) a
60% beneficial working interest in the Tiburon Block, onshore
Colombia. Registration of transfer
of such beneficial interests are subject to approval by the Agencia
Nacional de Hydrocarburos (the "ANH"):
Maria Conchita Block
The Maria Conchita Block is located in the Guajira Basin in
Colombia's Caribbean coast and has two gas wells that
have been tested at commercial rates. 3-D seismic surveys have been
done over areas covering both wells and the requisite environmental
permit has been granted. The Maria Conchita Block neighbours the
Chuchupa block to its north, one of Colombia's largest fields, which accounts for
40% of Colombia's daily natural
gas output and has been in production for 35 years.
SN-9 Block
The SN-9 Block is located in the Lower Magdalena Valley
75 km from Colombia's
Caribbean coast and holds
"in-situ" gas accumulations and an upside of additional oil
structures. The SN-9 Block has 2-D seismic and well data.
Tiburon Block
The Tiburon Block is located in the Upper Guajira on
Colombia's Caribbean coast and holds source rock with
kerogens Type III, gas prone for Tertiary sequence and Type II, and
oil prone for Cretaceous sequence. The Tiburon Block belongs to the
same basin as the Chuchupa Block to its south.
Forward-Looking Information
Except for the statements of historical fact, this news
release contains "forward-looking information" within the meaning
of the applicable Canadian securities legislation that is based on
expectations, estimates and projections as at the date of this news
release. The information in this news release about the
completion of the Transaction described herein, and other
forward-looking information includes but is not limited to
information concerning the intentions, plans and future actions of
the parties to the transactions described herein and the terms of
the Transaction.
Factors that could cause actual results to differ materially
from those described in such forward-looking information include,
but are not limited to, risks related to the Company's or
PentaNova's inability to satisfy a condition precedent to the
completion of the Transaction (including obtaining necessary
regulatory approvals), other risks related to completion of the
Transaction and risks related to the inability of either of the
Company or PentaNova to perform its respective obligations under
the Transaction.
The forward-looking information in this news release reflects
the current expectations, assumptions and/or beliefs of the Company
based on information currently available to the Company. In
connection with the forward-looking information contained in this
news release, the Company has made assumptions about the Company's
ability to complete the Acquisition and PentaNova's ability to
complete the Block Acquisitions and to perform its obligations
thereunder. The Company has also assumed that no significant events
occur outside of the Company's normal course of business. Although
the Company believes that the assumptions inherent in the
forward-looking information are reasonable, forward-looking
information is not a guarantee of future performance and
accordingly undue reliance should not be put on such information
due to the inherent uncertainty therein.
Any forward-looking information speaks only as of the date on
which it is made and, except as may be required by applicable
securities laws, the Company disclaims any intent or obligation to
update any forward-looking information, whether as a result of new
information, future events or results or otherwise.
SOURCE PMI Resources Ltd.