Burmis Energy Inc.

Burmis Energy Inc.

October 30, 2006 15:18 ET

Burmis Energy Inc. Increases Flow-Through Financing

CALGARY, ALBERTA--(CCNMatthews - Oct. 30, 2006) -


Burmis Energy Inc. (TSX:BME) ("Burmis") is pleased to announce that it has increased the previously announced bought deal financing agreement to a total of 3.0 million flow-through common shares from 2.5 million flow-through common shares by increasing the Underwriters option to 1.0 million common shares from 500,000 flow-through common shares. The agreement, with a syndicate of underwriters led by Acumen Capital Finance Partners Limited, and including FirstEnergy Capital Corp., CIBC World Markets Inc., Dundee Securities Corporation and Genuity Capital Markets (the "Underwriters"), will result in the issuance of 2.0 million flow-through common shares on a private placement basis at a price of $3.75 per flow-through common share for gross proceeds of $7.5 million. The option granted to the Underwriters to purchase an additional 1.0 million flow-through common shares at the same price and terms and conditions would increase total gross proceeds from this financing, if exercised in full, to $11.25 million.

In addition, certain insiders of Burmis will now subscribe for up to 80,000 flow-through common shares at a price of $3.75 per common share under this financing. This is an increase from the 55,000 flow-through common shares previously announced.

Completion of this transaction is subject to receipt of all necessary regulatory approvals. This transaction is expected to close on or about November 17, 2006.

Proceeds from this offering will be used to fund Burmis' ongoing exploration activities.

This news release shall not constitute an offer to sell or the solicitation of any offer to buy securities in any jurisdiction. The common shares of Burmis have not and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold in the United States or to any U.S. person except in certain transactions exempt from the registration requirements of the U.S. Securities Act and applicable state securities laws.

Advisory: This document contains forward-looking statements. More particularly, this document contains statements concerning the anticipated closing date of the offering. Although Burmis believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them because Burmis 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.

The closing of the offering could be delayed if Burmis is not able to obtain the necessary regulatory and stock exchange approvals on the timelines it has planned. The offering will not be completed at all if these approvals are not obtained or some other condition to the closing is not satisfied. Accordingly, there is a risk that the offering will not be completed within the anticipated time or at all.

The forward-looking statements contained in this press release are made as of the date hereof and Burmis undertakes no obligations 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.

Contact Information

  • Burmis Energy Inc.
    Mr. Aidan M. Walsh, P.Eng., MBA
    President and Chief Executive Officer
    (403) 781-7284
    (403) 261-9028 (FAX)
    Burmis Energy Inc.
    Mr. Scott R. Dyck, CA
    Chief Financial Officer
    (403) 781-7217
    (403) 261-9028 (FAX)
    Email: ir@burmisenergy.ca
    Website: www.burmisenergy.ca