HOUSTON, Oct. 30 /CNW/ - EnCap Energy Capital Fund V, L.P. ("EnCap V"),
EnCap Energy Capital Fund V-B, L.P. ("EnCap V-B"), EnCap Energy Capital Fund
VI, L.P. ("EnCap VI") and EnCap Energy Capital Fund VI-B, L.P. ("EnCap VI-B")
(collectively, the "EnCap Group"), together with certain third party
investors, entered into a bridge loan facility on October 18, 2007, (the
"Bridge Loan") with GFI whereby the EnCap Group has loaned GFI a total of
$12.5 million of the $25.5 million Bridge Loan.
Pursuant to the terms of the Bridge Loan, the EnCap Group may, subject to
certain conditions, including GFI failing to repay the full amount of the
Bridge Loan within certain time frames, receive an aggregate of up to
7,500,000 common share purchase warrants (the "Warrants").
Each Warrant, if issued, would entitle the members of the EnCap Group to
purchase one common share of GFI (the "Common Shares") for a period of two
years from the date of issuance at a price equal to the 10-day volume-weighted
average closing price of the Common Shares on the TSX Venture Exchange as
calculated at the date of issuance of the Warrants.
If all of the Warrants were issued and exercised, the EnCap Group would
acquire 7,500,000 Common Shares, which would constitute approximately 4.49% of
GFI's currently outstanding Common Shares.
In connection with the commitment fee payable pursuant to the Bridge
Loan, the EnCap Group acquired ownership, from treasury, of an aggregate of
265,435 Common Shares (approximately 0.16% of GFI's outstanding Common
Shares). EnCap V acquired 64,529 Common Shares, EnCap V-B acquired ownership
of 51,089 Common Shares, EnCap VI acquired 96,820 Common Shares and EnCap VI-B
acquired 52,997 Common Shares. EnCap Investments L.P. is the manager of EnCap
V, EnCap V-B, EnCap VI and EnCap VI-B.
This acquisition was made for investment purposes and in the future each
of the members of the EnCap Group may acquire or dispose of Common Shares from
time to time.
For further information:
For further information: Please contact Brent Bechtol (713) 659-6100 to
obtain a copy of the report filed by the EnCap Group pursuant to the
Securities Acts of British Columbia and Alberta.