Glamis Resources Ltd.
TSX VENTURE : GLM.A
TSX VENTURE : GLM.B

Glamis Resources Ltd.

September 04, 2009 17:31 ET

Glamis Completes $80 Million Bank Facility and Closes Previously Announced Corporate Acquisition

CALGARY, ALBERTA--(Marketwire - Sept. 4, 2009) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW.

Glamis Resources Ltd. ("Glamis") (TSX VENTURE:GLM.A) (TSX VENTURE:GLM.B) is pleased to announce that it has completed a new $80 million banking facility. The new facility consists of a $10 million operating line with Bank of Montreal and a $70 million syndicated facility arranged by Bank of Montreal, and including National Bank, Bank of Nova Scotia and ATB Financial. The facility is a borrowing base facility subject to semi-annual review by the bank, with the next review scheduled for the spring of 2010. Glamis has approximately $40 million drawn on the facility after completing its previously announced corporate and asset acquisitions.

Glamis has also closed the previously announced corporate acquisition of Renegade Oil & Gas Ltd. Pursuant to the acquisition, Glamis issued an aggregate of 39.6 million Class A Shares to the former Renegade security holders and assumed options and warrants exercisable for a further 5.0 million Class A Shares. Following the completion of the acquisition, Glamis has 272.1 million Class A Shares and 922,500 Class B Shares issued and outstanding.

The closing of the previously announced transactions and new credit facility has positioned the Company with a light oil, high net back production base of 4,000 boe/d, with significant light oil resources play exposure, focused in Saskatchewan, coupled with a strong balance sheet and excess debt capacity. Glamis continues to be opportunistic for further strategic light oil acquisitions to augment our existing inventory of 200 light oil development drilling locations and more than 215,000 net acres of undeveloped land.

Glamis is a uniquely positioned, well-capitalized junior oil and gas company with a proven management team committed to aggressive, cost-effective growth of light oil reserves and production in Saskatchewan and Manitoba. Glamis' Class A Shares and Class B Shares trade on the TSX Venture Exchange under the symbols GLM.A and GLM.B, respectively.

This press release shall not constitute an offer to sell, nor the solicitation of an offer to buy, any securities in the United States, nor shall there be any sale of securities mentioned in this press release in any state in the United States in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.

FORWARD LOOKING STATEMENTS: This press release contains a forward-looking statement. More particularly, this press release contains a statement concerning Glamis' anticipated rate of production by year end. The forward-looking statement is based on certain key expectations and assumptions made by Glamis, including expectations and assumptions concerning the success of optimization and efficiency improvement projects, the availability of capital, the success of future drilling and development activities, the performance of existing wells, the performance of new wells and prevailing commodity prices. Although Glamis 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 Glamis 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 associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), commodity price and exchange rate fluctuations and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. Certain of these risks are set out in more detail in the Glamis' Annual Information Form which has been filed on SEDAR and can be accessed at www.sedar.com. The forward-looking statements contained in this press release are made as of the date hereof and Glamis 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.

MEANING OF BOE: When used in this press release, boe means a barrel of oil equivalent on the basis of 1 boe to 6 thousand cubic feet of natural gas. Boe/d means a barrel of oil equivalent per day. Boe's may be misleading, particularly if used in isolation. A boe conversion ratio of 1 boe for 6 thousand cubic feet of natural gas is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

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.

Contact Information

  • Glamis Resources Ltd.
    Trent J. Yanko, P.Eng.
    President and CEO
    (403) 265-7200
    (403) 265-7150 (FAX)
    or
    Glamis Resources Ltd.
    Matt Janisch, P.Eng.
    Vice-President, Finance & CFO
    (403) 265-7200
    (403) 265-7150 (FAX)
    or
    Glamis Resources Ltd.
    440, 333 - 5th Avenue S.W.
    Calgary, AB T2P 3B6