Edge Resources Inc.
TSX VENTURE : EDE

Edge Resources Inc.

March 13, 2012 09:19 ET

Edge Resources Inc. Closes First Tranche of Bought-Deal Financing

CALGARY, ALBERTA--(Marketwire - March 13, 2012) - Edge Resources Inc. ("Edge" or the "Company") (TSX VENTURE:EDE) is pleased to announce that it has closed the first tranche, or $1,250,000, of the previously announced bought-deal financing. Additionally, the Company has retired $500,000 of secured debt, which was converted into common shares of the Company at an issue price of $0.15 per share.

Henderson Global Investments Limited ("Henderson") will become greater than a 20% shareholder on closing of the second tranche, or $3,250,000, of the financing; and thus, the second tranche will close concurrently upon receipt of TSX Venture Exchange and shareholder approval.

The Company expects to garner shareholder approval for the second and final tranche of the financing via a consent resolution over the next few weeks, or, if necessary, management will hold a special shareholder meeting on April 18, 2012 at 10:00 am at the X-Change Conference Centre, Suite 200, Standard Life Building, 639 - 5th Avenue S.W., Calgary, Alberta.

Fees related to the financing were limited to an aggregate of $112,500 in cash (2.5% of the gross proceeds) and 750,000 common shares (2.5% of the aggregate common shares issued). There were not any broker warrants issued in conjunction with this financing. Additionally, there were no penalties, fees or warrants associated with the issuance of the $500,000 debt, retirement of the debt, or conversion of the debt to equity.

The net proceeds of the financing are intended for the development of the Company's oil assets with the objective of significantly increasing production and reserves from the Company's recently acquired assets in Primate, Saskatchewan and from the Company's existing oil- producing property in Grand Forks, Alberta.

Brad Nichol, President & CEO of Edge, commented, "This capital injection affords us the opportunity to commence a completely oil-focused initiative with expectations for significant increases in oil production and associated cash flow within the year. Notwithstanding, we are very fortunate to have initiated a strategic partnership with a global powerhouse in Henderson and we look forward to the benefits of such a partnership for years to come."

About Edge Resources Inc.

Edge Resources is focused on developing a balanced portfolio of oil and natural gas assets from properties in Alberta and Saskatchewan, Canada. The management team's high drilling success rate is based on the safe, efficient deployment of capital and a proven ability to efficiently execute in shallow formations, which gives Edge Resources a sustainable, low-cost, competitive advantage.

About Henderson Global Investments Limited

Henderson Global Investors is a leading independent global asset management firm. The company provides its institutional, retail, and high net-worth clients access to skilled investment professionals representing a broad range of asset classes, including equities, fixed income, property and private equity. With its principal place of business in London, Henderson is one of Europe's largest investment managers, with approximately £64.3 billion (CDN$101.3 billion) assets under management.

For more information, visit the company website: www.edgeres.com.

This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects are forward-looking statements. Although the Company believes the expectations expressed in such forward looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements. For more information on the Company, Investors should review the Company's registered filings which are available at www.sedar.com.

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

Trading in the securities of Edge Resources Inc. should be considered highly speculative.

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

  • Edge Resources Inc.
    Brad Nichol
    President
    +1 (403) 767 9905

    Edge Resources Inc.
    Nathan Steinke
    Chief Financial Officer
    +1 (403) 767 9905
    www.edgeres.com

    Merchant Securities Limited
    Max Bascombe
    +44 207 628 2200

    Merchant Securities Limited
    Lindsay Mair
    +44 207 628 2200