Cygam Energy Inc.

Cygam Energy Inc.

February 05, 2010 09:00 ET

Cygam Energy Announces Equity Financing and Filing of Preliminary Short Form Prospectus

CALGARY, ALBERTA--(Marketwire - Feb. 5, 2010) -


Cygam Energy Inc. ("Cygam" or the "Corporation") (TSX VENTURE:CYG) announced today that it has filed and received a receipt for a preliminary short form prospectus in respect of an equity financing (the "Offering"), on a "reasonable efforts" basis, of up to $15 million of units of the Corporation (the "Units"), each Unit being comprised of one common share of the Corporation and one-half of one common share purchase warrant exercisable for a period of 18 months following the closing of the Offering, subject to early expiration upon certain price targets being met. The issue price of the Units to be sold in connection with the Offering will be determined in the context of the market.

The Offering will be conducted by Octagon Capital Corporation, Byron Securities Ltd. and Thomas Weisel Partners Canada Inc. (the "Agents"). The Agents have the option, exercisable for a period of 30 days following the closing of the Offering, to increase the Offering by up to an additional fifteen (15%) percent of the total number Units sold at the issue price. The Offering is subject to all customary conditions and regulatory approvals, including that of the TSX Venture Exchange.

The net proceeds of the Offering are intended to be used by Cygam to fund work on its existing properties in Italy and Tunisia, and for working capital and general purposes.

Cygam is a Calgary based exploration company with producing oil and gas properties in Canada and Tunisia and extensive international exploration concessions. The main focus of the Corporation is the acquisition, exploration and development of international oil and gas permits, primarily in Italy, Tunisia and the Mediterranean Basin. Cygam currently holds various interests in six exploratory permits in Italy and four exploratory permits in Tunisia encompassing approximately 3.5 million gross acres (approximately 1.8 million net acres before pending farmouts).

Certain statements contained in this release constitute forward-looking information. These statements relate to future events or the Corporation's future performance. The use of any of the words "could", "expect", "believe", "will", "projected", "estimated" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on current beliefs or assumptions as to the outcome and timing of future events. Actual future results may differ materially. In particular, statements with respect to the proposed Offering and the use of proceeds from the Offering contain forward looking information. The Corporation's Annual Information Form and other documents filed with securities regulatory authorities (accessible through the SEDAR website at describe the risks, material assumptions and other factors that could influence actual results and which are incorporated herein by reference. The Corporation disclaims any intention or obligation to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as may be expressly required by applicable securities laws.

This news release does not constitute an offer to sell or the solicitation of any offer to buy the securities in any jurisdiction. The common shares and warrants comprising the Units will not be and have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States, or to a U.S. person, absent registration, or an applicable exemption therefrom.

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 or accuracy of this release.

Contact Information

  • Cygam Energy Inc.
    Dario Sodero
    President and Chief Executive Officer
    (403) 802-6983
    (403) 802-6984 (FAX)
    Cygam Energy Inc.
    Ali Rawji
    Chief Financial Officer
    (403) 802-6983
    (403) 802-6984 (FAX)