CALGARY, ALBERTA--(Marketwire - Oct. 15, 2012) - Treherne Resources Ltd. ("Treherne"), a private company controlled by Mr. Clayton H. Riddell ("Mr. Riddell"), acquired ownership and control of 1,052,600 common shares of Donnycreek Energy Inc. ("Donnycreek"), issued on a "flow-through" basis, and Mr. Riddell personally acquired ownership and control of 1,562,500 common shares of Donnycreek, both through a larger brokered private placement by Donnycreek which raised gross proceeds of approximately Cdn $29,000,000 (the "Offering").
Together with previous acquisitions of Donnycreek common shares and a redeemable, convertible, unsecured debenture of Donnycreek in the principal amount of Cdn $500,000 (the "Debenture") that Treherne acquired on June 20, 2012, Mr. Riddell will own or control, directly and indirectly, 4,556,100 common shares of Donnycreek representing approximately 11.20% of Donnycreek's outstanding common shares after giving effect to the Offering and 5,056,100 common shares of Donnycreek representing approximately 12.28% of Donnycreek's outstanding common shares after giving effect to the Offering and the conversion or redemption of the Debenture.
The 1,052,600 common shares issued on a "flow-through" basis were acquired by Treherne at a price of Cdn $1.90 per common share, for a total consideration of Cdn $1,999,940. The 1,562,500 common shares were acquired by Mr. Riddell at a price of Cdn $1.60 per common share, for a total consideration of Cdn $2,500,000. All of the shares acquired are subject to a four month hold period from the date of their issuance in accordance with applicable Canadian securities legislation.
The shares acquired by Treherne and by Mr. Riddell were acquired for investment purposes. The acquisition pursuant to the Offering was made in reliance on section 2.3 of National Instrument 45-106. Mr. Riddell or entities controlled by him may increase or decrease ownership of, or control over, securities of Donnycreek depending on market conditions or any other relevant factor.
For further information, or to obtain a copy of the early warning report filed in connection with this matter, please contact Clayton H. Riddell.