Bronco Energy Ltd.
TSX : BCF

Bronco Energy Ltd.

June 06, 2008 08:09 ET

Bronco Announces $46.0 Million Bought-Deal Financing

CALGARY, ALBERTA--(Marketwire - June 6, 2008) -

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

Bronco Energy Ltd. ("Bronco") (TSX:BCF) is pleased to announce that it has entered into a financing agreement with a syndicate of underwriters, co-led by Macquarie Capital Markets Canada Ltd. and RBC Capital Markets, and including GMP Securities LP, CIBC World Markets Inc., Genuity Capital Markets, and Thomas Weisel Partners Canada Inc. (the "Underwriters") to sell, on a "bought-deal" short form prospectus basis, 3,120,000 common shares (the "Common Shares") at a price of C$14.75 per Common Share for gross proceeds of approximately C$46.0 million (the "Offering"). The Company will grant the Underwriters an option to purchase an additional 468,000 Common Shares exercisable at a price of C$14.75 per Common Share for a period of 30 days from the closing date (the "Over-allotment Option"). If the Over-allotment Option is exercised in full, additional gross proceeds will be approximately C$6.9 million for total gross proceeds of approximately C$52.9 million. The Offering is scheduled to close on or about June 30, 2008. The net proceeds from the Offering will be used to fund Bronco's exploration, development, and acquisition programs as well as for general corporate purposes.

Bronco Energy Ltd. trades on the Toronto Stock Exchange under the symbol "BCF".

This news release contains forward-looking statements. Forward-looking statements are based on the opinions and estimates at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements. There are uncertainties inherent in forward looking information, including known and unknown factors beyond Bronco's control. Bronco undertakes no obligation to update forward-looking information if circumstances or estimates or opinions should change except as required by law. The reader is cautioned not to place undue reliance on forward-looking statements.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction. The securities offered have not and will not be registered under the United States Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirement.

THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Contact Information

  • Bronco Energy Ltd.
    Brian Alford
    President and Chief Executive Officer
    (403) 699-8383
    (403) 693-0038 (FAX)
    or
    Bronco Energy Ltd.
    David Johnson
    Chief Financial Officer
    (403) 699-8383
    (403) 693-0038 (FAX)