VANCOUVER, BRITISH COLUMBIA--(Marketwired - Dec. 18, 2013) -
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.
Mr. Allen Wilson, President and CEO of Dakar Resource Corp. (TSX VENTURE:DKR) ("Dakar" or the "Company") announces that the Company has entered into letters of intent ("the LOIs") to acquire (the "Acquisition") a 50% working interest in two oil lease packages located in Kansas ("the Kansas Properties"). The Properties comprise 2,588 acres with current production of 51 barrels of oil per day. Dakar is paying $2.475 million cash for its working interest in the Kansas Properties. Dakar will enter into a joint operating agreement ("JOA") with Kansas Resource Exploration and Development LLC (as operator) for exploration and further development of the Kansas Properties. Dakar anticipates that its 50% share of exploration expenditures for infill drilling and other exploration and development will be $2.5 million over the next 12 months. An independent reserve report (effective November 30, 2013) has been prepared on the Kansas Properties by B.L Whelan. P. Geo. in accordance with National Instrument 51-101 which will be filed with the TSX Venture Exchange in connection with the Acquisition. The Reserve Report attributes an NPV of $6,855,000 (before taxes and undiscounted) to the Kansas Properties' proved, producing reserves.
Dakar will raise $5 million by way of a non-brokered private placement of 16,666,666 units (the "Units") at $0.30 per unit (the "Offering") to finance the acquisition of its interest in the Kansas Properties and for drilling and exploration over the 12 months following closing. Each unit is comprised of one common share and one half warrant (a "Warrant") with each whole Warrant being exercisable into one common share at $0.50 per share for two years from closing. The Offering is being sold in the exempt market and primarily to accredited investors in Canada and the U.S.
Dakar will be changing its name to "Jericho Oil Corporation" in connection with the Acquisition and Offering. Shareholder approval for a change of name was received at the Company's January 24, 2013 shareholders' meeting.
The Acquisition and Offering will not result in a change of control of Dakar. The Acquisition is considered an arm's length transaction. Finders' fees may be paid in connection with some of the proceeds raised in the Offering. Closing of the Acquisition and Offering is subject to certain closing conditions, including approval of the TSX Venture Exchange ("TSX-V"),
Dakar also announces the appointment of Mr. Robin Peterson, who has current Canadian public company reporting experience with U.S. oil operations, as its new Chief Financial Officer. Mr. Peterson replaces Mr. Henry Bromley who has left Dakar to dedicate his full attention to personal business pursuits. Dakar thanks Mr. Bromley for his able assistance as CFO during Dakar's start up and initial public offering.
The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.
ON BEHALF OF THE BOARD
Allen Wilson, President, C.E.O. and Director
Cautionary Note Regarding Forward-Looking Statements
This news release includes certain "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and Canadian securities laws. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual events and results to differ materially from Dakar's expectations include risks related to the exploration stage of Dakar's project; market fluctuations in prices for securities of exploration stage companies; and uncertainties about the availability of additional financing.
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.