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TSX Venture Exchange
Trading Symbol: PCA
CALGARY, Sept. 20, 2011 /CNW/ - PetroSands Resources (Canada) Inc. ("PetroSands" or the "Company") announces that it has closed its previously announced private
placement financing (the "Financing") of units of the Company ("Units") at a price of $0.165 per Unit. A total of 14,846,978 Units were
issued for total gross proceeds of approximately $2.45 million. Each
Unit consists of one (1) common share in the capital of the Company ("Common Share") and one half of one common share purchase warrant ("Warrant"). Each whole Warrant entitles the holder thereof to purchase one (1)
Common Share at an exercise price of $0.25 at any time within five (5)
years from the date of issuance. If, at any time within a year of the
closing date of the financing, the Common Shares trade at a 30 day
volume weighted average trading price greater than $0.60 on the TSX
Venture Exchange or such other exchange as the Common Shares may then
trade and the Company provides notice thereof to the holders of Units,
the holders of Units will have ten (10) days of receipt of such notice
to exercise their Warrants, failing which the Warrants will expire and
become null and void (the "Acceleration Right").
The Common Shares and Warrants will be subject to a four month statutory
hold period, such period expiring on January 16, 2012. Proceeds from
the Financing are intended to be used to fund the Company's ongoing
development and capital programs and for general corporate purposes.
The Company signed a finder's fee agreement with a brokerage firm (the "Finder") such that a cash commission in the amount of 6% of the gross proceeds
raised pursuant to the Financing from orders originating only from
introductions provided by the Finder were paid together with broker
warrants for 6% of the total number of securities issued pursuant to
the Financing from orders originating only from introductions provided
by the Finder. The broker warrants will be exercisable at a price of
$0.25 for up to 18 months following the Closing Date and are also
subject to the Acceleration Right. As a result of the Financing, a
total of $127,486.44 was paid to the Finder and 772,645 broker warrants
were issued to the Finder.
In addition, the company in pleased to announce the appointment of Mr.
Ryan Dunfield and Mr. Dennis Nerland to the Board of Directors.
Mr. Dunfield is Vice President with the Vancouver, B.C. based private
equity group Gibralt Capital Corporation. Mr. Dunfield is heavily
involved with the acquisition and divestitures of portfolio companies
in the resource sector and was appointed as a director of the
Corporation at conclusion of the Company's successful completion of the
Mr. Nerland has been a partner of Shea Nerland Calnan LLP since 1990,
practicing primarily in the areas of tax and trust law. Mr. Nerland is
a current and past Director of a number of private and public companies
listed on the TSX-V and the Toronto Stock Exchange and is currently a
trustee of a number of private investment trusts. Mr. Nerland holds a
Bachelor of Laws from the University of Calgary, a Master of Arts
degree in Economics from Carleton University, a double honours Bachelor
of Science degree in Mathematics and Economics from the University of
Calgary, and is a member of the Law Society of Alberta.
The Company looks forward to both Mr. Nerland's and Mr. Dunfield's
contributions and stewardship in advancing the company's future
business and development opportunities.
Additionally, the Company intends on providing an operational update to
its shareholders within the next ten business days following this
About PetroSands Resources (Canada) Inc.
PetroSands Resources (Canada) Inc. is a dynamic publicly traded junior
oil and gas company primarily targeting oil based opportunities in
Western Canada. The Company is focused on strategic oil based
acquisitions within its core areas in addition to exploiting and
exploring for incremental production, reserves, and increasing cash
flow. The Company currently has approximately 38.2 million common
shares outstanding. PetroSands' shares are listed on the TSX-V under
the trading symbol "PCA".
Forward-Looking Statements and Information: The forward-looking statements contained in this document are based on
certain key expectations and assumptions made by PetroSands, including
with respect to the use of proceeds of the Financing.
Although PetroSands believes that the expectations and assumptions on
which the forward-looking statements are based are reasonable, undue
reliance should not be placed on the forward-looking statements because
PetroSands can give no assurance that they will prove to be correct.
Since forward-looking statements address future events and conditions,
by their very nature they involve inherent risks and uncertainties.
Actual results could differ materially from those currently anticipated
due to a number of factors and risks. These include, but are not
limited to, the failure to obtain necessary regulatory approvals or
satisfy the conditions to closing the Financing, risks associated with
the oil and gas industry in general (e.g., operational risks in
development, exploration and production; delays or changes in plans
with respect to exploration or development projects or capital
expenditures, the uncertainty of reserve estimates, the uncertainty of
estimates and projections relating to production, costs and expenses,
and health, safety and environmental risks), commodity price and
exchange rate fluctuations and uncertainties resulting from potential
delays or changes in plans with respect to exploration or development
projects or capital expenditures. Certain of these risks are set out in
more detail in PetroSands' Management Discussion and Analysis which has
been filed on SEDAR and can be accessed at www.sedar.com.
The forward-looking statements contained in this document are made as of
the date hereof and PetroSands undertakes no obligation to update
publicly or revise any forward-looking statements or information,
whether as a result of new information, future events or otherwise,
unless so required by applicable securities laws.
The securities offered have not been and will not be registered under
the U.S. Securities Act of 1933, as amended, and may not be offered or
sold in the United States absent registration or applicable exemption
from the registration requirements. This press release shall not
constitute an offer to sell or the solicitation of an offer to buy nor
shall there be any sale of the securities in any jurisdiction in which
such offer, solicitation or sale would be unlawful.
Neither the 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 news
ON BEHALF OF THE BOARD OF DIRECTORS
SOURCE PetroSands Resources (Canada) Inc.
For further information:
Greg T. Busby President & CEO
Telephone: (403) 265-2770