Company intends to finance exploration and development of properties
By Devika Patel
Knoxville, Tenn., June 18 - Vanoil Energy Ltd. said it plans a C$20 million non-brokered private placement of units.
The company will sell 33,333,000 units of one common share and one warrant at C$0.60 per unit.
Each two-year warrant will be exercisable at C$1.00. The strike price reflects a 33.33% premium to the June 15 closing share price of C$0.75.
Proceeds will be used for exploration and development of the company's Kenyan oil and gas properties, the completion of a production sharing agreement with the Republic of Rwanda and for general working capital purposes.
The company also said it has formed a strategic partnership with Global Mining Management Corp., a private Vancouver-based company that provides management services for Ivanhoe Capital Corp., Ivanhoe Energy Inc. and Rowena Energy Inc., among others. This partnership is designed to strengthen the company's ability to raise funds and provides the company with an experienced oil and gas team.
The oil and gas exploration company is based in Vancouver, B.C.
| Issuer: | Vanoil Energy Ltd.
|
| Issue: | Units of one common share and one warrant
|
| Amount: | C$20 million
|
| Units: | 33,333,000
|
| Price: | C$0.60
|
| Warrants: | One warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$1.00
|
| Agent: | Non-brokered
|
| Pricing date: | June 18
|
| Stock symbol: | TSX Venture: VEL
|
| Stock price: | C$0.75 at close June 15
|
| Market capitalization: | C$29.04 million
|
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