Canoel International Energy Ltd.
TSX VENTURE : CIL

Canoel International Energy Ltd.

November 29, 2011 08:22 ET

Canoel Announces the Closing of the First Tranche of A Private Placement of Units

CALGARY, ALBERTA--(Marketwire - Nov. 29, 2011) -

THIS PRESS RELEASE IS NOT TO BE DISTRIBUTED TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW.

Canoel International Energy Ltd. ("Canoel" or the "Company") (TSX VENTURE:CIL) is pleased to announce the completion of the first tranche of its previously announced proposed private placement of units ("Units") at a price of $0.06 per Unit, for aggregate gross proceeds of $366,002.04. As disclosed in the Company's press release dated November 7, 2011, each Unit consists of one common share (a "Common Share") in the capital of Canoel and one Common Share purchase warrant (a "Warrant"). Each Warrant entitles the holder thereof to purchase, subject to adjustments, one additional Common Share (the "Warrant Share") at an exercise price of $0.10 per Warrant Share at any time on or before the date that is 24 months from the date of issuance of the Warrant.

In connection with this first tranche of the private placement, the Company will pay a finder's fee of $5,280.00 and grant a finder's fee of 88,000 common share purchase warrants (the "Finder's Warrants"). Each Finder's Warrant entitles the holder to acquire one common share at an exercise price of $0.10 for a period of 24 months from issuance.

The proceeds from this first tranche of financing strengthens Canoel's ability to complete the potential acquisition of producing properties in Argentina, as previously announced on September 23, 2011, which at the present time is still subject to further assessment and negotiations.

Forward-Looking Statements

This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "potential", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends", "subject to" and similar expressions are intended to identify forward-looking information or statements. More particularly and without limitation, this news release contains forward looking statements and information concerning the proposed private placement. The forward-looking statements and information are based on certain key expectations and assumptions made by Canoel, including the ability to obtain the required Exchange approval. Although Canoel believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward looking statements and information because Canoel can give no assurance that they will prove to be correct. By its nature, such forward-looking information is subject to various risks and uncertainties, which could cause the actual results and expectations to differ materially from the anticipated results or expectations expressed. These risks and uncertainties, include, but are not limited to, Canoel being unable to obtain the required Exchange approvals. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date hereof, and to not use such forward-looking information for anything other than its intended purpose. Canoel undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

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

  • Canoel International Energy Ltd.
    Jose Ramon Lopez Portillo
    Chairman of the Board
    (403) 938-8154
    (403) 775-4474 (FAX)

    Canoel International Energy Ltd.
    Andrea Cattaneo
    CEO & President
    (403) 938-8154
    (403) 775-4474 (FAX)