CALGARY, ALBERTA--(Marketwire - Sept. 19, 2012) -
NOT FOR DISTRIBUTION IN THE UNITED STATES OR THROUGH UNITED STATES WIRE SERVICES
Challenger Deep Resources Corp. ("Challenger" or the "Company") (TSX VENTURE:CDE) is pleased to announce a private placement of up to $800,000 (the "Private Placement").
Pursuant to the Private Placement, which is subject to acceptance by the TSX Venture Exchange, Challenger intends to issue, pursuant to applicable exemptions from registration and prospectus requirements of Canadian and United States securities laws, up to 2,666,667 Common Share Units (the "Units) at a price of CAD $0.30 per Unit. Each Unit is comprised of one Common Share and one Common Share Purchase Warrant ("Warrant"). Each Warrant entitles the holder to purchase one additional Common Share of Challenger at an exercise price of CAD $0.40 for a period of two years. The offering may be brokered through an agent, non-brokered, or partially brokered and partially non-brokered.
Challenger may pay a finder's fee in connection with the issue and sale of any or all of the Units under this offering. The finder's fee shall consist of a payment of no more than 7% of the gross proceeds of the offering in relation to subscribers introduced by any particular finder. Challenger may also pay finder's warrants ("Finder's Warrants") exercisable into common shares of Challenger in connection with the issue and sale of any or all of the Units under the offering. The Finder's Warrant's may be issued in an amount equal to no more than 7% of the aggregate number of Units in relation to subscribers introduced pursuant to the offering by any particular finder. The Finder's Warrants will have the same terms as the Warrants as outlined above.
The gross proceeds from the Private Placement will be used for permitting of Challenger's Tabang Coal Project in East Kalimantan, Indonesia, for the investigation and acquisition of additional Indonesian coal exploration projects and for general corporate purposes.
Challenger Deep Resources Corp. is an exploration company focused on the Indonesian coal industry. Challenger's business plan is to acquire, explore and to bring its viable coal projects into production. Challenger has an experienced Indonesian exploration and mining team with offices in Calgary, Singapore and Jakarta.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
Statements in this press release may contain forward-looking information including, statements regarding expected exploration activities and the completion of financings. Any statements that are contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of Challenger. Factors that could cause the actual results to differ materially from those in forward-looking statements include, granting of exploration permits, surface access and other licenses from Indonesian regulatory authorities, continued exploration results, the establishment of commercial quantities of coal, availability of new acquisitions on commercially acceptable terms, the continued availability of capital and financing, and general economic, market or business conditions in North America and in the Asia Pacific region. The reader is cautioned not to place undue reliance on any forward-looking information. There can be no assurance that the proposed private placement will be completed, that exploration programs in Indonesia or other project acquisitions will be completed or, if completed, will be successful.
The forward-looking statements contained in this press release are made as of the date of this press release, and Challenger does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as required by securities law.
Neither the 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 of accuracy of this news release.