Arcan Resources Ltd.
TSX VENTURE : ARN

Arcan Resources Ltd.

October 07, 2010 08:04 ET

Arcan Announces $43,500,000 Bought Deal Financing

CALGARY, ALBERTA--(Marketwire - Oct. 7, 2010) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Arcan Resources Ltd. ("Arcan" or the "Corporation") (TSX VENTURE:ARN) is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by Haywood Securities Inc. (collectively, the "Underwriters") pursuant to which the Underwriters have agreed to purchase and offer to subscribers on a "bought deal" basis 9,062,500 common shares of the Corporation at a price of $4.80 per common share (the "Offering Price") for total gross proceeds to the Corporation of $43,500,000. In addition, Arcan has granted the Underwriters an option (the "Over-Allotment Option") to purchase up to an additional 1,359,375 common shares at the Offering Price, such Over-Allotment Option being exercisable at the sole discretion of the Underwriters within 30 days after the closing of the offering, for additional gross proceeds of up to $6,525,000.

The offering will be made pursuant to a short form prospectus to be filed in all of the provinces of Canada other than Quebec. The offering is scheduled to close on or about November 5, 2010 and is subject to customary closing conditions including the receipt of all necessary approvals, including the approval of the TSX Venture Exchange and applicable securities regulatory authorities.

Arcan plans to use the proceeds of the offering to fund the Corporation's ongoing Beaverhill Lake light oil development program at Swan Hills and for general corporate purposes. 

About Arcan

Arcan Resources Ltd. is an Alberta, Canada corporation that is principally engaged in the exploration, development and acquisition of petroleum and natural gas located in Canada's Western Sedimentary Basin. 

Forward-Looking Information Advisory

The information and statements in this news release contains certain forward-looking information. This forward-looking information relates to future events or Arcan's future performance. In particular, this document contains forward-looking information and statements regarding: (i) the offering of common shares of the Corporation, (ii) the expected closing date of the offering; (iii) the use of proceeds of the offering; and (iv) future capital expenditures and projects. All statements other than statements of historical fact may be forward-looking information. This forward-looking information is subject to certain risks and uncertainties and may be based on assumptions that could cause actual results to differ materially from those anticipated or implied in the forward-looking information. The outcome and timing of the proposed offering, as well as the Corporation's actual results, performance or achievement could differ materially from those expressed in, or implied by, such forward-looking information and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking information will transpire or occur or, if any of them do, what benefits that the Corporation will derive from them. The Corporation's forward-looking information is expressly qualified in its entirety by this cautionary statement. Except as required by law, the Corporation undertakes no obligation to publicly update or revise any forward-looking information.

These securities have not been and will not be registered under the United States Securities Act of 1933, as amended, or the securities laws of any state, and may not be offered or sold in the United States unless an exemption from registration is available. This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities in the United States.

Neither 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

  • Arcan Resources Ltd.
    Ed Gilmet
    President and Chief Executive Officer
    (403) 262-0321
    or
    Arcan Resources Ltd.
    Douglas Penner
    Vice President, Finance and Chief Financial Officer
    (403) 262-0321
    dpenner@arcanres.com
    www.arcanres.com