Aroway Minerals Inc.
TSX VENTURE : ARW

October 14, 2010 09:46 ET

Aroway Completes Oil and Gas Acquisition and Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 14, 2010) -

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

AROWAY MINERALS INC. (TSX VENTURE:ARW) (the "Company") wishes to announce that further to its news releases of July 26, 2010, August 6, 2010 and September 8, 2010, it has received TSX Venture Exchange ("TSX-V") approval with respect to the purchase and sale agreement with Big Earl Resources Ltd. ("Big Earl") pursuant to which Big Earl has agreed to assign to the Company (the "Transaction") its farmin interest to acquire a 50% working interest in certain petroleum and natural gas assets (the "Worsley Property") currently owned by a private oil and gas exploration and production company ("Privco"), the terms of the underlying farmout agreement (the "Farmout Agreement") dated July 2, 2010 between Big Earl, as the Farmee, and Privco as the Farmor.

The terms of the Farmout Agreement are such that the aggregate funding of $4,000,000 payable by the Farmee towards the exploration program costs for the Worsley Property will be due and payable in four equal payments of $1,000,000 on or before the following dates: September 14, 2010, November 5, 2010, February 1, 2011 and April 1, 2011. The Company will make the first payment on closing and has the option to make the further payments. The Company will retain a proportionate interest in one or more of the four proposed Leduc prospect wells, corresponding to the aggregate number of payments it has made pursuant to the Farmout Agreement. The Company paid a finder's fee in connection with the Transaction in accordance with TSX-V policy.

The Company also wishes to announce that it has closed its non-brokered private placement of 6,845,420 flow-through units (the "FT Units") at a price of $0.20 per FT Unit and 3,750,000 non flow-through units (the "Units") at a price of $0.16 per Unit (collectively, the "Offerings"), for aggregate gross proceeds of $1,969,084. Each FT Unit consists of one common share in the capital of the Company which will be designated as a flow through share for the purposes of the Income Tax Act (Canada) and one common share purchase warrant, each entitling the holder thereof to purchase, for a period of 12 months from the date of issuance, one additional common share of the Company at a price of $0.20 per share. Each Unit consists of one common share of the Company and one common share purchase warrant, each entitling the holder thereof to purchase, for a period of 12 months from the date of issuance, one additional common share of the Company at a price of $0.20 per share. The shares issued pursuant to the private placement have a four month hold period expiring February 14, 2011.

In connection with the Offerings, the Company paid certain eligible finders a finders' fee in compliance with the policies of the TSX-V.

About Aroway Minerals Inc.

The Company is currently listed on the facilities of the Exchange under the trading symbol "ARW-V" and is now focused on oil and gas exploration, acquisition and production.

This news release may include forward-looking statements based on assumptions and judgements of management of the Company regarding future events or results. Such statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements. The Company disclaims any intention or obligation to revise or update such statements except as may be required by law.

The TSX Venture Exchange Inc. has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release. 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

  • Aroway Minerals Inc.
    Chris Cooper
    President, CEO and Director
    (604) 304-4087
    (604) 909-2679 (FAX)