Trading Symbol: KFG
TSX Venture Exchange
NATCHEZ, MS, June 10 /CNW/ - KFG Resources Ltd. (the "Company") President
Robert A. Kadane is pleased to announce an update on its previously announced
non-brokered private placement, as well as an update on drilling operations at
the Fayette Field, Jefferson County, Mississippi.
The Company now expects to close a private placement (the "Offering") of
up to 7 million units (the "Units"), up from 4 million Units as previously
announced. The other terms of the Offering as previously announced shall
remain the same. Each Unit will be priced at Cdn.$0.06, and will consist of
one common share in the capital of the Company and one common share purchase
warrant (each whole warrant, a "Warrant"). Each Warrant will entitle the
holder to subscribe for one additional common share of the Company at a price
of Cdn.$0.10 per share for a period of two years from the date of issue.
Total gross proceeds of the Offering will be up to Cdn. $420,000, up from
$240,000 as previously announced. The proceeds of the Offering will be used
for general working capital purposes and for future drilling possibilities.
Union Securities Ltd. of Vancouver has assisted the Company in this
Offering and will receive a cash finder's fee equal to 6% of the gross
proceeds from the sale of the Units.
The Offering is subject to certain conditions, including the approval of
the TSX Venture Exchange.
The Company also announces that the third shallow Wilcox test well
previously reported to be drilled by the Company at the Fayette Field,
Jefferson County, Mississippi, the "Spring Meadow No. 1" well, has resulted in
a dry hole.
The Company has now begun completion operations on the Company's "Spring
Hill No. 1" well, also at the Fayette Field, for which a new oil discovery was
announced on June 4, 2009. The Company will report results from the Spring
Hill No. 1 well as they are obtained over the next week or so.
The Company's common shares are listed on the TSX Venture Exchange, under
the trading symbol "KFG". For additional information, please contact Mr.
Robert A. Kadane, President, at (303) 825-7080.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
This press release contains "forward-looking information" that is based
on the Company's current expectations, estimates, forecasts and projections.
This forward-looking information includes, among other things, statements with
respect to the Company's plans, outlook, business strategy and exploration and
development of the Company's properties. The words "may", "would", "could",
"should", "will", "likely", "expect," "anticipate," "intend", "estimate",
"plan", "forecast", "project" and "believe" or other similar words and phrases
are intended to identify forward-looking information.
Forward-looking information is subject to known and unknown risks,
uncertainties and other factors that may cause the Company's actual results,
level of activity, performance or achievements to be materially different from
those expressed or implied by such forward-looking information. Such factors
include, but are not limited to: the ability to raise sufficient capital to
fund exploration and development; the quantity of and future net revenues from
the Company's reserves; oil and natural gas production levels; commodity
prices, foreign currency exchange rates and interest rates; capital
expenditure programs and other expenditures; supply and demand for oil and
natural gas; schedules and timing of certain projects and the Company's
strategy for growth; competitive conditions; the Company's future operating
and financial results; and treatment under governmental and other regulatory
regimes and tax, environmental and other laws.
This list is not exhaustive of the factors that may affect our
forward-looking information. These and other factors should be considered
carefully and readers should not place undue reliance on such forward-looking
information. The Company disclaims any intention or obligation to update or
revise forward-looking information, whether as a result of new information,
future events or otherwise.
For further information:
For further information: Mr. Robert A. Kadane, President, (303)