Petrox Resources
TSX VENTURE : PTC

October 22, 2013 18:25 ET

Petrox Closes Private Placement and Appoints New Directors

CALGARY, ALBERTA--(Marketwired - Oct. 22, 2013) -

Not for distribution in the United States or through United States wire services.

Petrox Resources Corp. (TSX VENTURE:PTC) ("Petrox" or the "Corporation") is pleased to announce it has closed its previously announced non-brokered private placement (the "Offering") and has issued 36,500,000 units in the capital of Petrox for gross proceeds of $3,306,295. Each unit consists of one common share in the capital of Petrox ("Common Share") and one warrant ("Warrant"), with 50% of the Warrants entitling the holder thereof to purchase one additional Common Share for a period of 12 months at an exercise price of $0.20, and the remaining 50% of the Warrants entitling the holder thereof to purchase one additional Common Share for the following 12 months at an exercise price of $0.25. A total of 2,129,446 of the units consist of Warrants and Common Shares issued on a tax flow-through basis and 34,370,554 of the units consist of Warrants and Common Shares issued on a non tax flow-through basis.

Proceeds of the Offering will be used to fund the exploitation and development plans for Petrox's P&NG properties in Central Alberta. Specifically, Petrox intends to use the funds to drill a Viking vertical core hole test and up to two Viking horizontal wells, as well as for general corporate purposes.

Finders' fees totaling $9,920 have been paid in relation to the Offering. In addition, broker warrants were issued to two finders entitling them to purchase, in aggregate, 107,555 Common Shares at an exercise price of $0.10 per Common Share for a period of two years from the date of closing of the Offering.

Petrox is also pleased to announce that, subject to the approval of the TSX Venture Exchange, Wentao Yang and Xiaobao Deng have been appointed to the Board of Directors of the Corporation. Mr. Yang has a Master of Business Administration degree from the University of Calgary and a Bachelor of Science degree in Geophysics. He is a founding partner of Kailas Capital Limited, a private financial consulting and investment company. Ms. Deng has a Master of Law degree and has worked as in-house counsel for several companies. She is currently the manager of the legal affairs department of SORESCO S.A., a joint venture firm in Costa Rica.

Upon these appointments, the Board of Directors of the Corporation will comprise of Glenn Cartier, Alan Chan, Edwin Tam, Garry Lohuis, Rudolf Cech, Douglas Baird, Wentao Yang and Xiaobao Deng.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

THIS PRESS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO SELL ANY OF THE SECURITIES DESCRIBED HEREIN IN THE UNITED STATES. THESE SECURITIES HAVE NOT BEEN, AND WILL NOT BE, REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED OR EXEMPT THEREFROM.

Contact Information

  • Petrox Resources Corp.
    Glenn Cartier, President
    Alan Chan, CFO
    (403) 270-2290 or (403) 237-8330
    (403) 270 - 2292 (FAX)
    www.petroxresources.ca