ProspEx Resources Ltd.

September 21, 2010 08:11 ET

ProspEx Resources Announces $5.5 Million Bought Deal Flow-Through Financing

CALGARY, ALBERTA--(Marketwire - Sept. 21, 2010) -


ProspEx Resources Ltd. ("ProspEx") (TSX:PSX) is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by Cormark Securities Inc. and including Peters & Co. Limited, CIBC World Markets, Stifel Nicolaus Canada Inc., and Wellington West Capital Markets Inc. (collectively the "Underwriters") pursuant to which the Underwriters have agreed to purchase 3,143,000 common shares issued on a "flow through" basis ("Flow-Through Shares") at an issue price of $1.75 per Flow-Through Share for gross proceeds to ProspEx of approximately $5.5 million (the "Offering").

The Flow-Through Shares will be offered in all provinces of Canada, excluding Quebec, by way of a short form prospectus. The Offering is scheduled to close on or about October 13, 2010 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the Toronto Stock Exchange.

Proceeds of the Offering will be used to fund ongoing exploration activities eligible for Canadian Exploration Expenses ("CEE") for the purposes of the Income Tax Act (Canada) and such CEE will be renounced to subscribers of the Flow-Through Shares effective on or before December 31, 2010.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities to be 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. 

Reader Advisory:

This press release contains forward-looking statements and forward-looking information within the meaning of applicable Canadian securities legislation (collectively, "forward-looking statements"). Specifically, this press release contains forward-looking statements relating to the use of proceeds of the Offering, the renouncing of Canadian exploration expenses, the filing of the short form prospectus and the closing date of the Offering. The forward-looking statements are based on certain key expectations and assumptions made by ProspEx, including assumptions concerning the timing of obtaining regulatory approvals and the state of the economy and the exploration and production business, which expectations and assumptions management of ProspEx believes to be reasonable at this time. Although ProspEx believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable at the date of this press release, undue reliance should not be placed on the forward-looking statements and information as ProspEx can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. The closing of the Offering could be delayed if ProspEx is not able to obtain the necessary regulatory and stock exchange approvals on the timelines it has planned. The Offering will not be completed at all if these approvals are not obtained or some other condition to the closing is not satisfied. Accordingly, there is a risk that the Offering will not be completed within the anticipated time or at all. Additionally, the intended use of the proceeds of the Offering by ProspEx may change if the board of directors of ProspEx determines that it would be in the best interests of ProspEx to deploy the proceeds for some other purpose. The forward-looking statements contained in this press release are made as of the date hereof and ProspEx undertakes no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws. 

The Toronto Stock Exchange has neither approved nor disapproved the contents of this press release.

Contact Information

  • ProspEx Resources Ltd.
    John Rossall
    President and Chief Executive Officer
    ProspEx Resources Ltd.
    George Yee
    Vice President Finance and Chief Financial Officer