Arcan Resources Ltd.

Arcan Resources Ltd.

November 08, 2011 11:39 ET

Arcan Resources Ltd. Announces Closing of Over-Allotment Option of Common Shares

CALGARY, ALBERTA--(Marketwire - Nov. 8, 2011) -


Arcan Resources Ltd. (TSX VENTURE:ARN) ("Arcan") is pleased to announce that it has closed the sale of an additional 123,400 common shares of Arcan (the "Common Shares") at a price of $5.45 per Common Share for total gross proceeds of $672,530, pursuant to the over-allotment option exercised by the underwriters in connection with its public offering of convertible unsecured subordinated debentures and Common Shares, which closed on October 7, 2011 (the "Over-Allotment Option"). The exercise of the Over-Allotment Option brings the total number of Common Shares sold by Arcan in this public offering to 9,323,400 and brings the total gross proceeds of the public offering to $135,812,530. The syndicate of underwriters for the offering of Common Shares was led by RBC Capital Markets as sole bookrunner and co-led by Haywood Securities Inc., and included Scotia Capital Inc., National Bank Financial Inc., BMO Capital Markets, CIBC World Markets Inc., Stifel Nicolaus Canada Inc., Paradigm Capital Inc., and PI Financial Corp.

Arcan initially intends to use the net proceeds of the Over-Allotment Option for general working capital purposes.

This news release does not constitute an offer to sell or the solicitation of an offer to buy any securities of Arcan in the United States. The Common Shares described in this news release 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, sold or delivered in the United States absent an exemption from registration.

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.

Advisory Regarding Forward-Looking Information and Statements

This news release contains certain forward-looking information (referred to herein as "forward-looking statements") within the meaning of applicable Canadian securities laws. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "intend", "expect", "may", "will", "should", or similar words suggesting future activities, circumstances or outcomes. In particular, this news release contains forward-looking statements relating to the intended use of the net proceeds from the Over-Allotment Option.

Forward-looking statements are based upon the opinions and expectations of management of Arcan as at the effective date of such statements. Although Arcan believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that those expectations will prove to have been correct. Forward looking statements are subject to certain risks and uncertainties that could cause actual events or outcomes to differ materially from those anticipated or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, such things as changes in general economic and industry conditions in Canada and elsewhere, disruptions in domestic or international financial markets and new laws and regulations (domestic and foreign). Although the intended use of proceeds is based on current expectations of management of Arcan, there may be circumstances where, for business reasons, a reallocation of funds may be necessary as may be determined at the discretion of Arcan and there can be no assurance as at the date hereof as to how those funds may be reallocated. Additional information and other factors that could affect Arcan and the Common Shares are included in the documents on file with applicable securities regulatory authorities, including the annual information form of Arcan for the period ended December 31, 2010, and may be accessed through the SEDAR website at

Forward-looking statements concerning the intended use of the net proceeds of the sale of the Common Shares are all based upon certain factors and assumptions, including the terms of the underwriting agreement entered into between Arcan and the Underwriters on September 23, 2011.

The forward-looking statements contained in this news release are made as of the date hereof and Arcan does not undertake any obligation to update publicly or to revise any of the included forward-looking statements to reflect new events or circumstances, except as required by applicable Canadian securities laws. The forward-looking statements contained herein are expressly qualified by this cautionary statement.

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
    Chief Executive Officer and President
    (403) 262-0321

    Arcan Resources Ltd.
    Douglas Penner
    Chief Financial Officer and Vice President, Finance
    (403) 262-0321

    Arcan Resources Ltd.
    Suite 3200, 450 - 1st Street S.W.
    Calgary, AB T2P 5H1
    (403) 262-0321