/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S./
VANCOUVER, Dec. 30 /CNW/ - Stikine Energy Corp. (TSX-V:SKY) (the "Company") is pleased to announce that it has closed its previously announced brokered private placement (the "Private Placement") of 17,000,000 units of the Company (the "Units") with Stonecap Securities Inc. ("Stonecap") and Cormark Securities Inc. ("Cormark") (Stonecap and Cormark, together, the "Agents") at a price of $0.30 per Unit for gross proceeds of $5,100,000. Each Unit consists of one common share of the Company (a "Common Share") and one-half of one common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant entitles the holder thereof to acquire one common share of the Company until December 30, 2012 at an exercise price of $0.40 until December 30, 2011 and at an exercise price of $0.50 until December 30, 2012. The Agents also exercised their option to purchase 2,550,000 Units at $0.30 per Unit for additional gross proceeds to the Company of $765,000.
In consideration for their services, the Company has paid to the Agents a cash commission of 7% of the gross proceeds of the Private Placement and issued to the Agents non-transferable common share purchase warrants (the "Agents' Warrants") to purchase up to 7% of the Units sold pursuant to the Private Placement. Each Agents' Warrant entitles the holder to purchase one common share of the Company (an "Agents' Warrant Share") until December 30, 2012 at an exercise price of $0.40 per Agents' Warrant Share.
All securities issued pursuant to the Private Placement are subject to a hold period expiring May 1, 2011. The net proceeds from the sale of the Units will be used for working capital and general corporate purposes.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless an exemption from such registration is available.
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 release.
STIKINE ENERGY CORP.
David J. Skerlec - Chief Financial Officer
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