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TORONTO, Dec. 10 /CNW/ - Geodrill Limited ("Geodrill" or "the Company"), a leading West African drilling company, announced today that it has obtained a receipt for its final prospectus filed with the securities regulatory authorities in each of the provinces of Canada, other than Quebec, and has entered into an agency agreement for its initial public offering and secondary offering of ordinary shares. The offering was priced at $2.00 per share for aggregate gross proceeds of $40,000,000. In addition, the Company has granted the agents an over-allotment option to purchase up to an additional 3,000,000 shares at the offering price exercisable for a period of 30 days from the date of closing of the Offering, to cover over-allotments, if any, and for market stabilization purposes. The offering is comprised of 7,500,000 shares which shall be issued and sold by the Company and 12,500,000 shares which are being sold by certain shareholders. The Company is expected to receive aggregate gross proceeds of $15,000,000 ($21,000,000 in the event that the over-allotment option is exercised). The closing of the offering is expected to occur on December 16, 2010, subject to customary closing conditions.
The syndicate for the offering was led by Clarus Securities Inc. and included Jennings Capital Inc. A copy of the final prospectus will be available on SEDAR (www.sedar.com) or by contacting Clarus Securities Inc., Exchange Tower, 130 King St. West, Suite 3640, Toronto, ON M5X 1A9, (416) 343-2777.
The Company has received conditional approval for the listing of its ordinary shares on the Toronto Stock Exchange under the symbol "GEO". Listing is subject to the Company fulfilling all of the requirements of the Toronto Stock Exchange, including distribution of the ordinary shares to a minimum number of public holders.
The Shares will not be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any U.S. state securities laws and may not be offered or sold in the United States absent registration or an available exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. No securities commission has approved or disapproved the contents of this press release.
About the Company
Geodrill Limited is a leading West African based drilling company currently operating in Ghana and Burkina Faso. Geodrill provides exploration and development drilling services to major, intermediate and junior mining companies with exploration and development operations in West Africa. The Company specializes in providing reverse circulation, diamond core and air-core drilling services using a modern fleet of drill rigs. The Company plans to grow organically and build its current client base while continuing to assess expansion opportunities throughout West Africa and other jurisdictions of Africa, to meet demand for its services and expertise.
Forward Looking Information
This press release contains "forward-looking information" which may include, but is not limited to, statements with respect to the future financial or operating performance of the Company, its subsidiaries, future growth, results of operations, performance, business prospects and opportunities. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "believes", or variations (including negative variations) of such words and phrases, or by the use of words or phrases that state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved.
Forward-looking statements are based on certain assumptions and analyses made by the Company in light of its experience and perception of historical trends, current conditions and expected future developments and other factors it believes are appropriate. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company and/or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements contained in this press release including, without limitation those described in the preliminary prospectus under the heading "Risk Factors". Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in such forward-looking statements, there may be other factors that may cause actions, events or results to differ from those anticipated, estimated or intended. Should one or more of these risks or uncertainties materialize or should assumptions underlying such forward-looking statements prove incorrect, actual results, performance or achievements may vary materially from those expressed or implied by the forward-looking statements contained in this press release. The forward-looking information and forward-looking statements contained herein are made as of the date of this press release and the company disclaims any obligation to update or review such information or statements, whether as a result of new information, future events or results of otherwise, except as required by law.
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