Madalena Ventures Inc. Announces $50 Million Bought Deal Equity Financing
February 14 2012 - 7:30AM
PR Newswire (Canada)
/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES/ CALGARY, Feb. 14, 2012 /CNW/ -
Madalena Ventures Inc. ("Madalena" or the "Company") is
pleased to announce that it has entered into an agreement with a
syndicate of underwriters (the "Underwriters") led by Casimir
Capital Ltd. pursuant to which the Underwriters have agreed to
acquire, on a bought deal basis, 40,000,000 common shares at a
price of $1.25 per common share to raise gross proceeds of
$50,000,000 (the "Offering"). Madalena has also granted the
Underwriters an over-allotment option (the "Over-Allotment Option")
to purchase, on the same terms, up to an additional 6,000,000
common shares. The Over-Allotment Option is exercisable in whole or
in part by the Underwriters at any time up to 30 days after
closing. If the Over-Allotment Option is exercised in full, the
maximum gross proceeds raised would be $57,500,000. The net
proceeds of the Offering will be used to fund the Company's capital
expenditure program and for other general corporate purposes. The
Common Shares will be offered in certain provinces of Canada by way
of a short form prospectus and on a private placement basis
elsewhere where permitted pursuant to applicable exemptions from
the prospectus and registration requirements. The closing of
the Offering is expected to occur on or about March 7, 2012, and is
subject to certain conditions, including, but not limited to, the
receipt of all necessary regulatory approvals, including the
approval of the TSX Venture Exchange. Madalena is an independent,
Canadian-based, international upstream oil and gas company whose
main business activities include exploration, development and
production of crude oil, natural gas liquids and natural gas. The
Company currently has production and exploration operations in
Argentina and is focused on international oil and gas opportunities
in South America. Madalena is publicly traded on the TSXV under the
symbol "MVN". The securities offered have not been and will not be
registered under the U.S. Securities Act of 1933, as amended, and
may not be offered or sold in the United States absent registration
or applicable exemption from the registration requirements. This
press release shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of the
securities in any jurisdiction in which such offer, solicitation or
sale would be unlawful. FORWARD LOOKING INFORMATION The information
in this news release contains certain forward-looking statements.
These statements relate to future events or our future performance.
All statements other than statements of historical fact may be
forward-looking statements. Forward-looking statements are often,
but not always, identified by the use of words such as "seek",
"anticipate", "plan", "continue", "estimate", "approximate",
"expect", "may", "will", "project", "predict", "potential",
"targeting", "intend", "could", "might", "should", "believe",
"would" and similar expressions. These statements involve
substantial known and unknown risks and uncertainties, certain of
which are beyond the Company's control, including: the impact of
general economic conditions; industry conditions; changes in laws
and regulations including the adoption of new environmental laws
and regulations and changes in how they are interpreted and
enforced; fluctuations in commodity prices and foreign exchange and
interest rates; stock market volatility and market valuations;
volatility in market prices for oil and natural gas; liabilities
inherent in oil and natural gas operations; uncertainties
associated with estimating oil and natural gas reserves;
competition for, among other things, capital, acquisitions, of
reserves, undeveloped lands and skilled personnel; incorrect
assessments of the value of acquisitions; changes in income tax
laws or changes in tax laws and incentive programs relating to the
oil and gas industry ; geological, technical, drilling and
processing problems and other difficulties in producing petroleum
reserves; and obtaining required approvals of regulatory
authorities. The Company's actual results, performance or
achievement could differ materially from those expressed in, or
implied by, such forward-looking statements and, accordingly, no
assurances can be given that any of the events anticipated by the
forward-looking statements will transpire or occur or, if any of
them do, what benefits that the Company will derive from them.
These statements are subject to certain risks and uncertainties and
may be based on assumptions that could cause actual results to
differ materially from those anticipated or implied in the
forward-looking statements. The Company's forward-looking
statements are expressly qualified in their entirety by this
cautionary statement. Except as required by law, the Company
undertakes no obligation to publicly update or revise any
forward-looking statements. Investors are encouraged to review and
consider the additional risk factors set forth in the Company's
Annual Information Form, which is available on SEDAR at
www.sedar.com. Neither the TSX Venture Exchange nor its Regulation
Service Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release. Madalena Ventures Inc. CONTACT: Dwayne H.
WarkentinMadalena Ventures Inc.President & CEO(403) 233-8010
ext. 232ORAnthony J. PotterMadalena Ventures Inc.Vice President,
Finance & CFO(403) 233-8010 ext. 233www.madalena-ventures.com
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