NuLoch Resources Inc.
TSX VENTURE : NLR.A
TSX VENTURE : NLR.B

NuLoch Resources Inc.

October 14, 2010 09:48 ET

NuLoch Resources Closes $28.1 Million Bought Deal Financing

CALGARY, ALBERTA--(Marketwire - Oct. 14, 2010) -

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

NuLoch Resources Inc. ("NuLoch") (www.nuloch.ca) (TSX VENTURE:NLR.A) (TSX VENTURE:NLR.B) reports that it has closed its previously announced "bought deal" equity financing (the "Offering") with a syndicate of underwriters led by Canaccord Genuity Corp. and including Raymond James Ltd., Wellington West Capital Markets, and Clarus Securities Inc. (the "Underwriters").

The Offering consisted of 16,000,000 Class A common shares of NuLoch (the "Common Shares") at a price of $1.25 per Common Share and 5,400,000 Class A common shares of NuLoch issued on a flow-through basis (the "Flow-Through Shares") at a price of $1.50 per Flow-Through Share. This transaction was previously announced on September 23, 2010. The Offering grants the Underwriters an option to acquire 2,400,000 Common Shares at $1.25 per Common Share on or before November 13, 2010 for market stabilization and over-allotment purposes. As a part of their compensation, the Underwriters have been issued compensation options entitling the Underwriters to subscribe for 642,000 Common Shares at $1.25 per Common Share on or before July 14, 2011. In the event that the Underwriters exercise their over-allotment option, they will receive additional compensation options entitling them to purchase that number of Common Shares that is equal to 3% of the number of Common Shares issued pursuant to the over-allotment option at an exercise price equal to $1.25 for a period of 9 months from the date of closing of the over-allotment option.

The proceeds received by NuLoch from the sale of the Flow-Through Shares will be used to incur eligible Canadian exploration expenses. The proceeds received by NuLoch from the sale of the Common Shares will be used to fund the exploration and development activities of the Corporation with particular emphasis on development of its properties at Tableland, Saskatchewan and Divide and Burke counties in North Dakota and for general working capital purposes.

NuLoch now has 117,526,038 Class A common shares and 652,500 Class B common shares issued and outstanding.

ADVISORIES

Certain information set forth in this press release contains forward-looking statements concerning the anticipated use of proceeds of the Offering that assumes the existence of certain conditions with respect to the capital expenditure program of NuLoch, general economic conditions and commodity prices. In each case, the risk factors that could cause actual results to vary from results expressed or implied by the forward looking statements contained in this press release are primarily events beyond NuLoch's control. These forward-looking statements may prove to be incorrect and undue reliance should not be placed on them. They are made as of the date hereof and unless otherwise required by applicable law, NuLoch disclaims any intention or obligation to update or revise such forward-looking statements, whether as a result of new information, future events or otherwise.

Neither 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

  • NuLoch Resources Inc.
    R. Glenn Dawson
    President and CEO
    (403) 920-0455
    (403) 920-0457 (FAX)
    nuloch@nuloch.ca
    or
    NuLoch Resources Inc.
    2200, 444 - 5th Avenue SW
    Calgary, Alberta T2P 2T8