/THIS NEWS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES OR TO
ANY UNITED STATES NEWS SERVICES/
CALGARY, Oct. 16 /CNW/ - BNP Resources Inc. ("BNP") is pleased to
announce that it has successfully closed a previously announced private
placement of 2,142,857 preferred shares ("Preferred Shares") of a wholly-owned
subsidiary of BNP at a price of $0.70 per share, for gross proceeds of
approximately $1,500,000. Each Preferred Share is convertible into one Class A
share of BNP, at the option of the subscriber, at any time prior to 36 months
following the closing of the offering (the "Maturity Date") and, in any event,
will automatically convert on the Maturity Date.
BNP is also pleased to announce that it has successfully closed a second
tranche of a previously announced private placement of Class A shares issued
on a "flow-through" basis ("Flow-Through Shares"). A total of 119,600
Flow-Through Shares were issued at a price of $0.84 per share, for total gross
proceeds of $100,464. As a result of closing the previously announced private
placements of Flow-Through Shares for total gross proceeds of $927,444 and of
Preferred Shares for total gross proceeds of approximately $1,500,000, BNP has
raised approximately $2,400,000 through the issuance of equity, which amount
exceeds the minimum it had undertaken to raise.
Acumen Capital Finance Partners Limited ("Acumen") acted as the agent in
respect of the private placement of Preferred Shares and Flow-Through Shares.
Proceeds from the offerings will be used to fund BNP's ongoing
exploration drilling program in its core focus areas. As part of its
commitment to develop its business opportunities in Saskatchewan, BNP has
acquired a one-section oil prospect in S.W. Saskatchewan, and has prepared for
two wells in Southeast Saskatchewan, one of which has commenced drilling.
The Class A Shares issuable upon conversion of the Preferred Shares will
be subject to a four month hold period from the date of closing of the private
placement. The Flow-Through Shares will be subject to a four month hold period
from the date of closing of the private placement.
BNP is actively engaged in the exploration for, the development and
production of, natural gas and oil reserves. BNP's business strategy is to
build sustainable and profitable per share growth through selective
acquisitions and internally generated exploration and development drilling.
BNP has approximately 9,604,100 Class A shares and 922,500 Class B shares
issued and outstanding which trade on the TSX Venture Exchange under the
symbols "BNX.A and "BNX.B".
Further information with regards to BNP may be found on the SEDAR website
www.sedar.com or on BNP's website www.bnpresources.com.
ADVISORY: This press release may contain forward-looking statements
including management's assessment of future plans and operations and
expectations of future production, cash flow and earnings. These statements
are based on current expectations that involve a number of risks and
uncertainties, which could cause actual results to differ materially from
those anticipated. These risks include, but are not limited to: the risks
associated with the oil and gas industry (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 fluctuation and
uncertainties resulting from potential delays or changes in plans with respect
to exploration or development projects or capital expenditures. The
forward-looking statements contained in this press release are made as of the
date hereof and BNP 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
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
For further information:
For further information: Gregory Bilcox, President and CEO, BNP
Resources Inc., Phone: (403) 695-1091, Fax: (403) 265-0413; Gordon B. Paul, VP
Finance and CFO, BNP Resources Inc., Phone: (403) 695-1095, Fax: (403)