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CALGARY, Nov. 8, 2013 /CNW/ - Artek Exploration Ltd. ("Artek" or the "Corporation") (TSX - RTK) is pleased to announce that it has entered into an agreement with a syndicate of underwriters co-led by Peters & Co. Limited and National Bank Financial Inc., and including Cormark Securities Inc., GMP Securities L.P., FirstEnergy Capital Corp., Clarus Securities Inc. and Macquarie Capital Markets Canada Ltd. (collectively, the "Underwriters"), pursuant to which the Underwriters have agreed to purchase, on a bought deal basis (i) 3,310,000 common shares to be issued on a flow-through basis in respect of Canadian exploration expenses ("CEE Flow-Through Shares") at a price of $4.08 per CEE Flow-Through Share; and (ii) 442,000 common shares to be issued on a flow-through basis in respect of Canadian development expenses ("CDE Flow-Through Shares") at a price of $3.62 per CDE Flow-Through Share, for aggregate gross proceeds to the Corporation of approximately $15.1 million. Insiders of Artek are participating in the offering.
Proceeds of the offerings will initially be used to reduce bank indebtedness thereby freeing up additional borrowing capacity to fund eligible expenditures that will be renounced to subscribers effective on or before December 31, 2013.
The CEE Flow-Through Shares will be offered in certain provinces of Canada by way of a short form prospectus. The CDE Flow-Through Shares will be issued on a private placement basis pursuant to applicable exemptions from prospectus requirements under applicable securities laws.
Closing is expected to occur on or about November 28, 2013 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the Toronto Stock Exchange.
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.
ADVISORY: This press release contains forward looking statements. More particularly, this press release contains statements concerning the anticipated closing date of the offering and the anticipated use of the net proceeds of the offering. Although Artek believes that the expectations reflected in these forward looking statements are reasonable, undue reliance should not be placed on them because Artek 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. The closing of the offering could be delayed if Artek is not able to obtain the necessary regulatory and stock exchange approvals on the timelines it has planned. The offering will not be completed at all if these approvals are not obtained or some other condition to the closing is not satisfied. Accordingly, there is a risk that the offering will not be completed within the anticipated time or at all. The intended use of the net proceeds of the offering by Artek might change if the board of directors of Artek determines that it would be in the best interests of Artek to deploy the proceeds for some other purpose.
The forward looking statements contained in this press release are made as of the date hereof and Artek undertakes no obligations 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.
SOURCE: Artek Exploration Ltd.
For further information:
President and Chief Executive Officer
Vice President Finance and Chief Financial Officer