Azabache Energy Inc.
TSX VENTURE : AZA

Azabache Energy Inc.

February 08, 2010 21:27 ET

Azabache Announces $6.5 Million Brokered Private Placement

TORONTO, ONTARIO--(Marketwire - Feb. 8, 2010) -

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

Azabache Energy Inc. ("Azabache" or the "Company") (TSX VENTURE:AZA) announces that it has negotiated the terms of a brokered private placement of up to $10 million with Toll Cross Securities Inc. and Jennings Capital Inc. as co-lead agents, together with Lightyear Capital Inc. (collectively the "Agents"). The offering will consist of up to $6,500,000 of common shares to be issued at a price to be determined in the context of the market (the "Offering"). Azabache has granted the Agents an over-allotment option for an additional $3,500,000 of common shares exercisable prior to closing of the Offering.

The Company has agreed to pay the Agents a 6% cash commission and issue a number of broker options equal to 6% of the number of common shares sold under the Offering. Each broker option will entitle the holder to acquire one common share of the Company, at a price equal to the issue price of the Offering for a period of 18 months from the closing of the Offering.

The closing is expected to occur on February 26, 2010, or such earlier or later date as the Agents and the Company may determine and the Offering is subject to regulatory approval.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful. The securities have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

For further information on Azabache Energy please visit the Company's website at www.azaenergy.com.

This press release was prepared by Azabache Energy Inc. which accepts the responsibility as to its accuracy. 

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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