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VANCOUVER, July 30 /CNW/ - Petromin Resources Ltd. ("Petromin" or, the "Company") announces that TerraWest Energy Corp. ("TerraWest") closed a private placement (the "Private Placement") with Aces Diamond International Ltd. ("Aces") of 27 million units, each consisting of one common share without par value (the "Subscription Shares"), one C Warrant for the purchase of one common share at a price of $0.07 exercisable for 2 years from the date of issuance (the "C Warrants") and one D Warrant for the purchase of one common share at a price of $0.10 exercisable for 3 years from the date of issuance (the "D Warrants" and collectively with the Subscription Shares and the C Warrants, the "Units"), at a price per Unit of $0.05. Aces is a wholly-owned subsidiary of Enviro Energy International Holdings Ltd.
The Private Placement is the first closing under a subscription agreement entered into between TerraWest and Aces on July 25, 2010 for a total of 90,000,000 Units (the "Subscription") to close in tranches over the next 12 months. The Subscription will provide TerraWest with the necessary finances to complete its 2010 annual drilling program and continue to meet its commitments under its coalbed methane production sharing contract with China United Coalbed Methane Corp., Ltd.
The Company, along with other TerraWest shareholders, was offered the opportunity to subscribe for Units, but the board of directors of the Company, with Kenny Chan and Ross Gorrell abstaining from voting as they are both directors of TerraWest, determined it was not in the best interests of the Company to participate in the financing at this time. However, the Company supports the Subscription as it furthers the interests of Petromin's shareholders by allowing TerraWest to continue exploration at its coalbed methane project in China's Western Xinjiang Autonomous Region.
Currently Petromin holds a 27.49% equity interest in TerraWest, or 17.79% on a fully diluted basis. Upon completion of the 90,000,000 units of the private placement, Petromin's interest in TerraWest will be reduced to 22.28% or 12.23% on a fully diluted basis.
About Petromin Resources Ltd.
Petromin is a progressive international petroleum and natural gas exploration and production company listed Tier 1 on the TSX Venture Exchange. Petromin was ranked 24th of the Top 100 Fastest Growing Companies in BC by Business in Vancouver in 2009 based on a 704% revenue increase over the past 4 years.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Petromin Resources Ltd.
For further information: For further information: PETROMIN RESOURCES LTD., 390-1090 W. Georgia St., Vancouver, B.C., V6E 3V7; Mike Suk, Telephone: (604) 682-8831, Fax: (604) 682-8683