By Devika Patel
Knoxville, Tenn., July 24 - North Peace Energy Corp. priced a private placement of shares for up to C$25 million. The deal was announced June 5.
The company will sell units at C$1.50 apiece. Each unit consists of one common share and one half-share warrant. Each whole warrant is exercisable at C$2.00 for 18 months.
The company also will sell flow-through common shares at C$1.65 per share. Up to C$5 million of the deal will be shares.
Settlement is expected Aug. 7.
The deal will be conducted by a syndicate led by GMP Securities LP and including TD Securities Inc., Blackmont Capital Inc., Canaccord Capital Corp. and Raymond James Ltd.
The majority of the proceeds will be used to fund all costs associated with the CSS pilot project, including the acquisition of capital equipment, construction costs and the drilling of two horizontal CSS wells. The remaining funds will be used to complete the 2008/2009 eight-well winter delineation drilling program, to advance engineering and environmental baseline work for the commercial CSS project and for general corporate purposes.
North Peace is an oil sands company based in Calgary, Alta.
| Issuer: | North Peace Energy Corp.
|
| Issue: | Units of one common share and one half-share warrant, flow-through shares
|
| Amount: | C$25 million
|
| Agents: | GMP Securities LP (lead), TD Securities Inc., Blackmont Capital Inc., Canaccord Capital Corp., Raymond James Ltd.
|
| Announcement date: | June 5
|
| Pricing date: | July 24
|
| Settlement date: | Aug. 7
|
| Stock symbol: | TSX Venture: NPE
|
| Stock price: | C$1.50 at close July 23
|
|
|
| Units
|
| Price: | C$1.50
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | 18 months
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| Warrant strike price: | C$2.00
|
|
|
| Shares
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| Amount: | C$5 million (maximum)
|
| Price: | C$1.65
|
| Warrants: | No
|
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