Chamaelo Exploration Ltd.
TSX : CXN

Chamaelo Exploration Ltd.

July 06, 2005 08:21 ET

Chamaelo Exploration Ltd. Announces Common Share Private Placement

CALGARY, ALBERTA--(CCNMatthews - July 6, 2005) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Chamaelo Exploration Ltd. ("Chamaelo") (TSX:CXN) is pleased to announce that it has entered into an agreement to issue, on a "bought deal" private placement basis, 3,000,000 common shares at a price of $7.50 per share for gross proceeds of $22.5 million. Proceeds from the issue will be used to assist in funding Chamaelo's 2005 capital program and for general corporate purposes.

The shares will be issued through a syndicate of underwriters led by Sprott Securities Inc. and including Tristone Capital Inc., Orion Securities Inc., GMP Securities Ltd., National Bank Financial Inc. Haywood Securities Inc. and Trilon Securities Corporation. Closing of the issue is subject to certain conditions including receipt of required regulatory approvals and it is anticipated to close on or about July 27, 2005.

The common shares offered have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirement. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

Contact Information

  • Chamaelo Exploration Ltd.
    Robert Zakresky
    President and Chief Executive Officer
    (403) 232-8575 ext. 226
    or
    Chamaelo Exploration Ltd.
    Nolan Chicoine
    VP, Finance and Chief Financial Officer
    (403) 232-8575 ext. 242