Poplar Creek Resources Inc.
TSX VENTURE : PCK

September 16, 2010 10:16 ET

Poplar Creek Resources Inc. Announces $2,000,000 Financing

CALGARY, ALBERTA--(Marketwire - Sept. 16, 2010) -

NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA 

Poplar Creek Resources Inc. (TSX VENTURE:PCK) (the "Corporation"), "PCK" on the TSX Venture Exchange (the "Exchange"), announces that it has entered into a Letter of Engagement with StephenAvenue Securities Inc. ("StephenAvenue" or the "Agent") for a brokered private placement of up to $2 million consisting of up to $1.5 million of flow-through common shares at $0.10 each and up to $500,000 of units ("Units") at a price of $0.08 per Unit; a Unit consists of one common share and a non-transferable warrant to purchase a common share at $0.10 each for 18 months from closing of the financing. The closing of the financing is anticipated to be no later than October 29, 2010. StephenAvenue will act as exclusive agent on a commercially best efforts basis but may form a selling group of securities dealers. The Agent will be paid a commission of 6% of the gross proceeds and will receive broker warrants for that number of shares which is equal to 6% of the number of flow-through shares and Units sold in the financing and will be exercisable for a period of 18 months from closing at $0.10 each. The agreement is subject to Exchange approval and usual terms relating to a brokered private placement including satisfactory due diligence by the Agent and market-out clause. The proceeds from the flow-through financing will be utilized to incur Canadian Exploration Expenses ("CEE") and will be renounced to subscribers of the shares as CEE effective for the 2010 taxation year.

The proceeds of the financing are anticipated to be expended in the drilling of a multi-core hole drilling program on the Corporation's Fort McMurray Oil Sands Leases and on the Chard property (Townships 79 & 80, Range 6 W4M) pursuant to the Memorandum of Understanding with Norwegian Oil Sands Corp. whereby the Corporation can earn a 50% working interest in 31 sections of contiguous Oil Sand Leases, and which was announced in the Corporation's news releases of July 22, 2010 and August 24, 2010. 

This release includes certain statements that may be deemed "forward looking statements". All statements in this release, other than statements of historical facts, which address future activities including the closing of the financing, exploration drilling and activity, and events or developments that the Corporation intends, plans, anticipates, believes, estimates or expects are forward looking statements. Actual results may differ materially. Although the Corporation believes 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 results to differ materially from those in the forward looking statements include, but are not limited to: market conditions and difficulties of raising funds in this economic environment, availability and costing of exploration contractors; exploration success; continued availability of capital government regulations, laws and charges; environmental developments; exploitation economics; and generally the economic, market, financial and business conditions in the present volatile and uncertain economic period. Investors are cautioned that any statements are not guarantees of future performance and actual results or developments may differ materially from those stated in the forward looking statements. The Corporation does not intend, and does not assume any obligation to update these forward-looking statements to reflect events or circumstances after the date hereof. More detailed information about potential factors that could affect financial results is included in the documents filed from time to time with the Canadian securities regulatory authorities by Poplar Creek. This news release shall not constitute an offer to sell or the solicitation of any offer to buy securities in any jurisdiction.

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

  • Poplar Creek Resources Inc.
    John Carruthers
    CEO
    (403) 875-1820
    or
    Poplar Creek Resources Inc.
    Richard Edgar
    President & CFO
    (403) 616-5387