TSX.V - LEO
VANCOUVER, March 25 /CNW/ - Lion Energy Corp. (the "Company" or "Lion Energy") (TSX.V - LEO) announces that on March 24, 2010 it SEDAR-filed a report dated January 21, 2010 covering an independent assessment of contingent prospective resources of the Company's properties located in east Africa. This report, prepared by Gaffney, Cline & Associates Ltd., technical and management advisors to the petroleum industry, of Hampshire, UK, is a redacted version of a full report earlier filed with the TSX Venture Exchange (the "Exchange"). A copy of the redacted report is available for viewing at www.sedar.com.
As previously announced in the Company's March 15, 2010 news release, the Exchange gave its final acceptance of the farm-in agreement between the Company and Africa Oil Corp., pursuant to which Lion Energy has the right to earn an interest in five petroleum blocks located in the Republic of Kenya and in Puntland, Somalia. On March 19, 2010, the Exchange also gave its final acceptance of the Company's private placement that conditionally closed in June, 2009. Acceptance of the private placement by the Exchange was conditional upon prior acceptance of the farm-in agreement. Under the terms of the private placement, Lion Energy issued 10,900,000 units, each unit consisting of one common share (the "Shares") of the Company and one non-transferable warrant (the "Warrants"). These Warrants permit the holders to purchase up to a further 10,900,000 common shares of the Company (the "Warrant Shares") at a price of $0.50 until June 20, 2011. All restrictive hold periods attaching to the Shares, Warrants and Warrant Shares have now expired. Proceeds from the private placement being $3,270,000, together with interest earned over the last nine months, will be used by the Company to honour its commitments under the farm-in agreement. A fee of $163,500 plus a Warrant for the purchase of up to 545,000 Warrant Shares has been issued to Peninsula Merchant Syndications Corp., the Company's finder in connection with the private placement.
Mr. Ian Gibbs, a nominee for election as a director at the Company's annual and special general meeting scheduled for April 12, 2010, has agreed to accept a position as Company director effective April 1, 2010. Mr. Gibbs is a Canadian chartered accountant and a graduate of the University of Calgary where he obtained a B.Com degree in 1991. Mr. Gibbs is presently Chief Financial Officer of the aforementioned Africa Oil Corp., one of the Lundin group of companies (since October 2006). Mr. Gibbs began his association with the Lundin group in September 2004, and since that time has held a variety of prominent positions. Mr. Gibbs is also a director of Petro Vista Energy Corp., and Fortress Minerals Corp. The Company is pleased to announce that John R. Nelson has agreed to act as the Company's Interim Chief Financial Officer in place of Jeannine Webb who resigned on February 25, 2010.
About the Company:
The Company is a well-financed, Canadian exploration company with a vision to develop a significant presence in the developing oil and gas industry. The Company signed an agreement with Africa Oil Corp. that grants the Company the right to earn an interest in five petroleum blocks located in the Republic of Kenya and in Puntland, Somalia. The Company further holds a 27.6% interest in Encanto Potash Corp., a junior potash exploration company and a 20% interest in Sulphur Solutions Inc., an emerging fertilizer company developing state-of-the-art patented technology for the production of micronized sulphur fertilizer.
On behalf of the Board,
LION ENERGY CORP.
President and CEO
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 RELEASE
This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address exploration drilling, exploration activities and events or developments that the Company expects to occur, are forward-looking statements. Forward-looking statements in this news release include statements regarding the Company's intentions or plans, whether of a corporate or exploratory nature. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploration and exploration successes, and continued availability of capital and financing and general economic, political, market or business conditions. These statements are based on a number of assumptions, including, among others, assumptions regarding general business and economic conditions, the timing and receipt of regulatory and governmental approvals for the transactions described herein, the ability of the Company and other parties to satisfy stock exchange and other regulatory requirements in a timely manner, the availability of financing for the Company's proposed transactions and programs on reasonable terms, and the ability of third-party service providers to deliver services in a timely manner. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected on the forward-looking statements. The Company does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law or regulatory policies.
SOURCE LION ENERGY CORP.
For further information: For further information: To find out more about the Company, please visit our website at www.lionenergycorp.com