FINANCING / Scimitar Hydrocarbons completes Private Placement
CALGARY, Dec. 23 /CNW/ - Scimitar Hydrocarbons Corporation (SlY) is
pleased to announce that it has entered into a flow-through share agreement
with Triax Resource Limited Partnership II, by its agent, Altamira Management
Ltd. Pursuant to the agreement, Scimitar has agreed to issue 2,250,000 Special
Warrants on a flow-through basis at a price of $0.80 per Special Warrant. The
subscription proceeds and Special Warrants will be held in escrow and released
as qualified Canadian exploration and development expenses are incurred. Each
Special Warrant permits the holder thereof to acquire one common share of
Scimitar at no additional cost at any time prior to the first anniversary of
the issuance of the Special Warrants at which time the Special Warrants
automatically convert to common shares. Canaccord Capital Corporation acted as
agent in respect of the transaction.
Scimitar will also issue 500,000 Special Warrants, having the same price
and conversion terms, to private investors, and to employees, officers and
directors of Scimitar. Thomson Kernaghan & Co. Ltd. acted as agent in respect
of these additional Special Warrants.
The $2,200,000 raised in the flow-through offering will be used to
finance Scimitar's 25% interest in the two deep test wells being drilled by
Shell Canada Limited in Alberta and British Columbia, the first well having
been spudded on December 1, 1997 and the second to follow after drilling the
first. Mr. Gerald Mackenzie, Chairman of Scimitar, stated that raising this
money now allows Scimitar to continue with its rapid implementation of field
work at the Issaran field, Scimitar's 400 million barrel original oil in place
heavy oil project in Egypt, and to continue its development and finalization
of other new international projects.
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