New Arcadia Resources Ltd - News Release
Private placement to be expanded and repriced
New Arcadia Resources Ltd
NAX
Shares issued 10636828
1997-05-08 close $1
Friday May 9 1997
News Release
Dr Charles Kohlhaas reports
The company has arranged with Pacific International Securities Inc to expand,
re-price and proceed with the January 22 1997 brokered private placement as
follows: 4,000,000 special warrants at $0.80. Each special warrant is exercisable
without further consideration into one share and one warrant exercisable into one
share at $0.80 in the first six months and at $0.92 in the following 18 months. The
company will have 120 days from the closing date to qualify the securities for
resale otherwise each special warrant will be exercisable in 1.1 shares and 1.1
warrants.
In addition, the March 14 1997 non-brokered private placement has been
re-priced and will proceed as to 1,000,000 special warrants at $0.80. These
non-brokered special warrants will be sold to insiders of the company who will be
financing their purchase through a disposition of a portion of their existing holdings
of free trading shares in the company through sales on or off the market. The
terms of the non-brokered special warrants will be the same as in the brokered
private placement except that the insiders will not have the benefit of a penalty
provision in the event the company's prospectus is not receipted within 120 days
of the closing of the private placement.
Pacific International will receive a commission of 10% of the gross proceeds from
the sale of brokered special warrants payable in either cash or special warrants at
the election of the agent and will also receive an additional 3%, payable in either
cash or shares at the election of the agent, of any proceeds realized from warrants
exercised within six months of the effective date of the company's prospectus
qualifying the special warrants. Pacific International will also receive agents
warrants equivalent to 15% of the number of special warrants sold in the offering
and a corporate finance fee of 100,000 agents warrants both having the same
terms as warrants.
New Arcadia has an option to earn a 72% interest in a Guatemalan oil licence to
develop and explore for oil and gas on a 554,000-acre tract with an undeveloped
oil discovery and three large exploration targets.
The previous oil discovery on the License area produced 145,000 barrels of 34.8
API gravity oil. Other operators are actively exploring and producing in the region
and pipeline and loading facilities have been built. As well, peace has been
restored in the region as a result of the election of a democratic government.
The recently announced agreement of Norcen Energy, a senior Canadian energy
producer, to acquire Basic Petroleum indicates renewed confidence in that
country and its petroleum potential. Basic currently accounts for most of the oil
produced in Guatemala. Basic's fields are just west of, and their pipelines and
pump stations are located on New Arcadia's optioned area.
In addition, the company has an extensive drill-ready exploration program on a
700,000-acre contract area in neighbouring Belize.
These projects are in the Peten Basin, a prolific producing basin and the source of
all of Mexico's extensive petroleum resources.
(c) Copyright 1997 Canjex Publishing Ltd. canada-stockwatch.com
It's nice to see this project on the move. Definately lots of potential in this property. |
