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CALGARY,
AB, March 6, 2023 /CNW/ - Yangarra
Resources Ltd. ("Yangarra" or the
"Company") (TSX: YGR) announces it has entered into an
equity financing agreement, on a bought deal basis, with a
syndicate of underwriters (collectively, the "Underwriters") led by
ATB Capital Markets Inc. and CIBC Capital Markets.
Under the terms of the agreement, Yangarra will issue an
aggregate of 5,905,600 common shares to be issued on a flow-through
basis in respect of Canadian development expenses ("CDE") (the "CDE
FT Shares") at a price of $2.54 per
CDE FT Share.
Yangarra has also granted to the Underwriters an option to
purchase additional CDE FT Shares, equal to 15% of the number of
CDE FT Shares sold pursuant to the offering at the offering price,
for market stabilization purposes and to cover overallotments for a
period expiring 30 days after the date of closing.
The total aggregate gross proceeds are $15,000,224 and up to $17,250,257 pursuant to the full exercise of the
Over-Allotment Option (the "Offering"). Insiders of Yangarra will
participate for up to $1.5 million of
the Offering.
The proceeds from the issuance of CDE FT Shares will be used by
Yangarra to incur CDE expenses on Yangarra's existing Canadian
properties prior to December 31, 2023
and Yangarra will renounce qualifying expenditures to purchasers of
the CDE FT Shares on or before December 31,
2023.
The CDE FT Shares will be offered by way of short form
prospectus in each of the Alberta,
British Columbia, Saskatchewan and Ontario, pursuant to National Instrument
44-101 - Short Form Prospectus Distributions and in such other
jurisdictions outside of Canada,
in accordance with all applicable laws and provided that no
prospectus, registration statement or similar document is required
to be filed in such jurisdiction. The financing is expected to
close on or about March 27, 2023 and
is subject to approval of the Toronto Stock Exchange, receipt of
all necessary regulatory approvals and other customary
conditions.
Proceeds of the Offering will assist with accelerated
development of the Chambers area. A 15 mmcf/d compression facility
was constructed by Yangarra's OFS group which together with a 10.5
km sales line will be completed by the end of this week. The sales
line was installed in 28 days with compelling costs which
demonstrate the advantage of Yangarra's OFS group. In addition,
production from recently acquired land was tied into this new
facility with a 4.5 km gathering line constructed concurrently with
the sales line. The Company expects the facility to be operational
in the next few days with the initial three wells (currently
testing) to be tied-in, followed by five wells in early April.
The accelerated development will not affect total capital
spending or production guidance for the year, however the Company
expects to be in a position to potentially increase production
guidance later in the year.
This news release does not constitute an offer to sell, or the
solicitation of an offer to buy, the common shares in any
jurisdiction, including the United
States, or to, or for the account or benefit of, U.S.
persons absent U.S. registration or an applicable exemption
therefrom, nor shall there be any sale of the common shares in any
state in which such offer, solicitation or sale would be unlawful
prior to registration or qualification under the securities laws of
any such state. The common shares being offered will not be, and
have not been, registered under the
United States Securities Act of 1933, as amended, and
may not be offered or sold within the
United States or to, or for the account or benefit of, a
U.S. person, absent U.S. registration or an applicable exemption
therefrom.
For further information, please contact James Evaskevich, CEO at (403) 262-9558.
Certain information regarding Yangarra set forth in this news
release, including management's assessment of future plans,
operations and operational results may constitute forward-looking
statements under applicable securities law and necessarily involve
risks associated with oil and gas exploration, production,
marketing and transportation such as loss of market, volatility of
prices, currency fluctuations, imprecision of reserves estimates,
environmental risks, competition from other producers and ability
to access sufficient capital from internal and external sources. As
a consequence, actual results may differ materially from those
anticipated in the forward-looking statements.
Forward Looking Statements
This press release contains forward-looking statements. The use
of any of the words anticipate, continue, estimate, expect, may,
will, project, should, believe, and similar expressions are
intended to identify forward-looking statements. These statements
involve known and unknown risks, uncertainties and other factors
that may cause actual results or events to differ materially from
those anticipated in such forward-looking statements. More
particularly, this press release contains statements with respect
to the closing of the Offering, the use of proceeds of the
Offering, the tax treatment of the CDE FT Shares and the timing of
the renunciation of the Qualifying CDE Expenditures.
The forward-looking statements are based on key expectations and
assumptions made by Yangarra. Although Yangarra believes that the
expectations and assumptions on which the forward-looking
statements are based on reasonable, undue reliance should not be
placed on the forward-looking statements because Yangarra 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.
Actual results could differ materially from those currently
anticipated due to a number of factors and risks. These included
but are not limited to, risks associated with oil and gas
exploration, production, marketing and transportation such as loss
of market, volatility of prices, currency fluctuations, imprecision
of reserves estimates, environmental risks, competition from other
producers and ability to access sufficient capital from internal
and external sources. Certain of these risks are set out in more
detail in Yangarra's annual information form dated March 1, 2023 and in Yangarra's management's
discussion and analysis for the years ended December 31, 2022 and 2021, both of which have
been filed to SEDAR and can be accessed at www.sedar.com
The forward-looking statements contained in this press release
are made as of the date hereof and Yangarra undertakes no
obligation to update publicly or revise any forward-looking
statements or information, whether as a result of new information,
future events or otherwise, unless so is required by applicable
securities laws.
All reference to $ (funds) are in Canadian dollars.
SOURCE Yangarra Resources Ltd.