Petro Uno Resources Ltd.
TSX VENTURE : PUP

November 29, 2010 13:13 ET

Petro Uno Resources Ltd. Announces Closing of $11.5 Million Equity Financing

CALGARY, ALBERTA--(Marketwire - Nov. 29, 2010) -

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

Petro Uno Resources Ltd. ("Petro Uno" or the "Company") (TSX VENTURE:PUP) is pleased to announce that it has closed its previously announced special warrant financing. The Company entered into an agreement on November 7, 2010 with a syndicate of underwriters led by Macquarie Capital Markets Canada Ltd. and including Canaccord Genuity Corp. and Paradigm Capital Inc. (collectively, the "Underwriters") to issue, on a bought deal private placement basis, 16,670,000 special warrants ("Special Warrants") of the Company at a price of $0.60 per Special Warrant (the "Issue Price") for gross proceeds of $10,002,000 (the "Offering"). The Company also granted the Underwriters an over-allotment option entitling the Underwriters to acquire, at the Issue Price, up to an additional 2,500,500 Special Warrants. The over-allotment option was exercised in full by the Underwriters, with gross proceeds of $11,502,300 received by Petro Uno on the closing of the Offering.

Each Special Warrant entitles the holder to acquire one common share of Petro Uno without payment of any additional consideration and without further action. The Special Warrants will be deemed exercised on the earlier of (i) the day on which a final passport receipt (the "Receipt") evidencing a receipt for the prospectus on behalf of each of the applicable securities regulatory authorities is issued, and (ii) four months and a day following the closing date. Until a Receipt is issued for such prospectus, the Special Warrants will be subject to a four month hold period under applicable Canadian securities laws, expiring on March 30, 2011.

The Company will use commercially reasonable efforts to file and clear a final prospectus in each applicable jurisdiction to qualify the common shares issuable upon exercise of the Special Warrants and obtain the Receipt by December 31, 2010 (the "Qualification Deadline"). If the Receipt is not obtained on or prior to the Qualification Deadline, the Company shall issue to each holder of Special Warrants, for no additional cost and without further action on the part of such holder, an additional 0.1 of a common share for each common share to be issued to such holder pursuant to the Special Warrant held by such holder.

In consideration for their efforts, the Underwriters received a cash commission of 6% of the gross proceeds. The Company also issued broker warrants ("Broker Warrants") to the Underwriters equaling 6% of the number of Special Warrants sold, such Broker Warrants being at an exercise price equal to the Issue Price, for a period of 12 months from the closing date.

Petro Uno plans to use the net proceeds from the Offering to continue its ongoing drilling program in the Viking Formation in the Dodsland area of west central Saskatchewan.

This news release does not constitute an offer to sell or a solicitation of any offer to buy the securities in the United States. The securities offered have not been and will not be registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements of such Act.

About Petro Uno Resources Ltd.

Petro Uno is a junior oil and gas company, trading on the TSX Venture Exchange under the symbol "PUP". 

Forward Looking Information

Information set forth in this press release containing forward-looking statements relating to the use of proceeds of the Offering and the filing of the preliminary prospectus and the final prospectus are based on assumptions as of the date hereof. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond Petro Uno's control. Readers are cautioned that the assumptions and factors discussed in this press release are not exhaustive and that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise, and as such, undue reliance should not be placed on forward-looking statements. The use of proceeds of the financing could differ materially from those expressed in such forward-looking statements. The filing of the preliminary prospectus and final prospectus and obtaining the receipt for the final prospectus could be delayed if Petro Uno is not able to obtain the necessary regulatory and stock exchange approvals on the timelines it has planned. Accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur as specified in the press release or at all. Unless required by law, Petro Uno disclaims any intention or obligation to update or revise any forward looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements are expressly qualified by these cautionary statements.

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

  • Petro Uno Resources Ltd.
    William Ambrose
    President and Chief Executive Officer
    (403) 453-2266 Ext. 224
    or
    Petro Uno Resources Ltd.
    Jordan Kevol
    Vice President, Exploration and Development
    (403) 453-2266 Ext. 232