Border Petroleum Corp.
TSX VENTURE : BOR

September 07, 2012 18:11 ET

Border Petroleum Announces Update on Bought Deal Financing

CALGARY, ALBERTA--(Marketwire - Sept. 7, 2012) -

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

Border Petroleum Corp. (TSX VENTURE:BOR) ("Border" or the "Corporation") is pleased to announce that, in connection with the previously announced offering of common shares of the Corporation ("Common Shares") and Common Shares to be issued on a "CEE flow-through" basis pursuant to the Income Tax Act (Canada) ("CEE Flow-Through Shares"), as a result of demand, the Corporation and the syndicate of underwriters led by Dundee Securities Ltd. and including Macquarie Capital Markets Canada Ltd., Canaccord Genuity Corp., National Bank Financial Inc. and Fraser Mackenzie Limited (collectively, the "Underwriters") have agreed to amend the terms of the offering (the "Offering") to include, in addition to Common Shares and CEE Flow-Through Shares, Common Shares to be issued on a "CDE flow-through" basis pursuant to the Income Tax Act (Canada) ("CDE Flow-Through Shares"). The aggregate gross proceeds of the Offering will remain at approximately $18 million.

The Offering will now consist of the issuance of 48,335,000 Common Shares at a price of $0.15 per Common Share, 4,550,000 CDE Flow-Through Shares at a price of $0.165 per CDE Flow-Through Share and 55,556,000 CEE Flow-Through Shares at a price of $0.18 per CEE Flow-Through Share for aggregate gross proceeds of $18,001,080.

The Underwriters will be paid a cash commission of 6% of the gross proceeds of the Offering.

Border has also granted the Underwriters an option (the "Over-Allotment Option") to purchase up to an additional 7,250,000 Common Shares at a price of $0.15 per Common Share for additional gross proceeds of up to $1,087,500. The Over-Allotment Option will be issued on the same terms and conditions as the Offering, exercisable at any time, in whole or in part for a period of 30 days following closing of the Offering, to cover over allotments and for market stabilization purposes.

The net proceeds of the Offering will primarily be used for the Corporation's exploration and development program and for general corporate purposes. The Common Shares will be offered in all provinces of Canada, other than Québec, and on a private placement basis in the United States.

Closing is expected to occur on or about September 28, 2012 and is subject to certain conditions including, but not limited to, necessary regulatory approvals, including the approval of TSX Venture Exchange Inc.

Warning

The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements. This news release does not constitute an offer to sell or the solicitation of any offer to buy nor will there be any sale of these securities in any province, state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such province, state or jurisdiction.

Forward-Looking Statements

The forward-looking statements contained in this document are based on certain key expectations and assumptions made by Border, including with respect to, expectations and assumptions concerning timing of receipt of required regulatory approvals. Although Border 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 Border 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, the failure to obtain necessary regulatory approvals, 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. A description of assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in Border's disclosure documents on the SEDAR website at www.sedar.com.

The forward-looking statements contained in this document are made as of the date hereof and Border 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.

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

  • Border Petroleum Corp.
    Kelly Kimbley
    President & CEO
    (403) 538-8450
    (403) 444-5042 (FAX)