/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES/
CALGARY, Jan. 25 /CNW/ - Bolivar Energy Corp. ("Bolivar" or the "Company") is pleased to announce that, in connection with its previously
announced public offering, the Company and the syndicate of
underwriters co-led by Raymond James Ltd. and Haywood Securities Inc.
and including Paradigm Capital Inc. (the "Underwriters"), have agreed
to increase the size of the offering to 108,530,000 units (the
"Units"). Under the revised terms, the Underwriters have agreed to
purchase, on a bought deal basis, an aggregate of 108,530,000 Units at
$0.17 per Unit for aggregate gross proceeds of $18,450,100 (the
"Offering"). Each Unit shall consist of one common share of the Company
(the "Common Shares") and one-half of one Common Share purchase warrant
of the Company (each whole warrant, a "Warrant"). Each Warrant will be
exercisable for one Common Share at a price of $0.25 for a period of 24
months from the Closing Date (as defined below).
In addition, the Underwriters shall have the option to purchase up to an
additional 16,279,500 Units (15% of the aggregate number of Units
sold), exercisable in whole or in part at any time up to 48 hours prior
to the Closing Date, at the same price and terms as the Offering for
additional gross proceeds of up to $2,767,515.
The net proceeds from the Offering will be used to fund the exploration
and development of the Company's petroleum assets in Colombia and for
general business development, acquisitions, and working capital
The Units will be offered by way of private placement to accredited
investors under applicable securities laws in the Provinces of Quebec,
Ontario, Alberta, Saskatchewan and British Columbia and such other
jurisdictions in Canada as the Co-lead Underwriters and the Corporation
The Offering is scheduled to close on or about February 15, 2011 (the
"Closing Date") and is subject to certain conditions including, but not
limited to, the receipt of all necessary approvals including the
approval of the TSX Venture Exchange and the securities regulatory
This news release does not constitute an offer to sell or a solicitation
of an offer to buy any of the securities in the United States. The
securities have not been and will not be registered under the United
States Securities Act of 1933, as amended (the "1933 Act"), or any
state securities laws and may not be offered or sold within the United
States or to, or for the account or benefit of U.S. persons (as defined
in Regulation S under the 1933 Act) absent such registration or an
applicable exemption from such registration requirements.
About Bolivar Energy Corp.
Bolivar Energy Corp. is an early stage exploration company active in the Llanos Basin in Colombia, and trading on the TSX Venture Exchange
under the symbol "BVR".
This news release includes forward-looking statements related to the
expected occurrences in relation to the properties identified. A
multitude of factors can cause actual events to differ significantly
from any anticipated development and although the Company believes that
the expectations represented by such a forward-looking statement are
reasonable; there can be no assurance that such expectations will be
realized. These forward looking statements are based upon assumptions
that the Company has made concerning the oil and gas industry in
Colombia, the reliability of available data regarding the properties,
and the continuing market for oil and gas. Risk factors may include
the uncertainty of conducting operations under a foreign regime, the
availability of labour and equipment, the fluctuating price of oil and
gas, and the Company's dependence upon other participants in the
property areas. Neither the Company nor any of its subsidiaries nor
any of its officers or employees guarantees that the assumptions
underlying such forward-looking statements are free from errors, nor do
any of the foregoing accept any responsibility for the future accuracy
of the opinions expressed in this document or the actual occurrence of
the forecasted developments.
SOURCE Bolivar Energy Corp.
For further information: