COLONIA ENERGY CORP.
TSX VENTURE : CLA

COLONIA ENERGY CORP.

November 20, 2009 07:00 ET

Colonia Energy Corp. Announces Written Consent of Shareholders, Appointment of New Board of Directors and Management Team and Closing of First Tranche of Private Placement

CALGARY, ALBERTA--(Marketwire - Nov. 20, 2009) -

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Colonia Energy Corp. ("Colonia" or the "Corporation") (TSX VENTURE:CLA) is pleased to announce that it has received the written consent of a majority of its shareholders to its previously announced $7.5 million non-brokered unit and common share private placements.

Colonia also announces that the previously announced change of directors and officers of Colonia has been completed. The board of directors of Colonia is now comprised of Michael Erickson, William Ambrose, D.M. (Bud) MacDonald, Don Boykiw and Stephen Mannix. The senior officers of Colonia are now comprised of Michael Erickson as President and Chief Executive Officer, Alex Wylie as Vice-President, Finance and Chief Financial Officer, Paul T. Codd as Vice-President Engineering and Chief Operating Officer, and William Young as Executive Vice-President, Exploration.

Colonia also announces that it has closed the first tranche of its non-brokered unit private placement (the "Unit Private Placement") and common share private placement (the "Common Share Private Placement") (collectively, the "Private Placements"). Pursuant to the Unit Private Placement, the Corporation issued 35,464,285 units (the "Units") at a price of $0.14 per Unit for gross proceeds of approximately $4.95 million. Each Unit is comprised of one common share ("Common Share") and one purchase warrant ("Warrant") entitling the holder to purchase one Common Share at a price of $0.18 per Common Share for a period of five years from today. Pursuant to the Common Share Private Placement, the Corporation issued 15,719,527 Common Shares (the "Common Shares") at a price of $0.14 per Common Share for gross proceeds of approximately $2.2 million. Closing of the balance of the Private Placements, for gross proceeds of approximately $350,000, is expected to take place on or about November 23, 2009.

All Common Shares and Units issued under the Private Placements are subject to contractual escrow with one third of such securities released each six months from today.

The proceeds of the Private Placements will be used for general corporate purposes.

Note Regarding Forward Looking Statements

This document contains forward-looking statements. More particularly, this document contains statements concerning the use of proceeds of the Private Placements.

The forward-looking statements are based on certain key expectations and assumptions made by Colonia, including expectations and assumptions concerning timing of receipt of required regulatory approvals and third party consents and the satisfaction of other conditions to the completion of the remaining portion of the Private Placements.

Although Colonia believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Colonia can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks that required regulatory and third party approvals and consents are not obtained on terms satisfactory to the parties, the board of directors of Colonia determines that it would be in the best interests of Colonia to deploy the proceeds for some other purpose and risks that other conditions to the completion of the Private Placements are not satisfied on anticipated timelines or at all.

The forward-looking statements contained in this press release are made as of the date hereof and Colonia undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

Neither TSX Venture nor its Regulation Services Provided (as that term is defined in the policies of the TSX Venture) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Colonia Energy Corp.
    Michael Erickson
    President & CEO
    (403) 355-8922
    or
    Colonia Energy Corp.
    Alex Wylie
    Vice-President, Finance & CFO
    (403) 410-3376
    or
    Colonia Energy Corp.
    Suite 725, 435 - 4th Avenue S.W.
    Calgary, AB T2P 3A8