RB Energy Inc.

April 28, 2014 16:12 ET

RB Energy Announces $22 Million Bought Deal Equity Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwired - April 28, 2014) -


RB Energy Inc. (the "Company" or "RBI" or "RB Energy") (TSX:RBI)(OTCQX:RBEIF) is pleased to announce that it has entered into an agreement for a $22,032,000 equity financing with Dundee Securities Ltd. and Scotiabank as co-lead underwriters on behalf of a syndicate including GMP Securities L.P. and Euro Pacific Canada Inc. (collectively, the "Underwriters"). The Underwriters have agreed to purchase, on a "bought deal" basis by way of a short form prospectus, 32,400,000 common shares of the Company (the "Shares") at a price of $0.68 per Share (the "Offering"). The Underwriters have been granted the option to purchase up to an additional 15% of the Offering, exercisable in whole or in part at any time up to 30 days after the closing of the Offering. In the event that the over-allotment option is exercised in its entirety, the aggregate gross proceeds of the Offering will be $25,336,800.

The Offering is scheduled to close on or about May 21, 2014. The Shares will be offered in all provinces of Canada (except Quebec) by way of a short form prospectus. The Offering is subject to a number of conditions, including receipt of the approval of the Toronto Stock Exchange and the applicable securities regulatory authorities.

The net proceeds will be used for the Company's commissioning and development activities and the ongoing financial obligations related to its Québec Lithium Project and for general working capital purposes.

This news release does not constitute an offer of securities for sale in the United States. The securities being offered have not been, nor will they be, registered under the Unites States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States absent U.S. registration or an applicable exemption from U.S. registration requirements.

About RB Energy

RBI is a Canadian company formed pursuant to the arrangement involving Sirocco Mining Inc. and Canada Lithium Corp. It currently owns Aguas Blancas, an iodine producing mine in northern Chile, and the Quebec Lithium Project near Val d'Or, the geographical heart of the Quebec mining industry. The Aguas Blancas mine is currently in production. The Quebec Lithium Project has completed construction and is in the commissioning phase. For more information regarding RBI, please refer to its public filings available at www.sedar.com http://www.sedar.com/.

Forward-Looking Statements

Certain information contained in this news release, including any information relating to the receipt of all requisite regulatory approvals, completion of the Offering, the use of proceeds and the scheduled closing date of the Offeringare "forward-looking statements". These forward-looking statements relate to future events or future performance and reflect the Company's expectations regarding the future growth, results of operations, business prospects and opportunities of RBI. These forward-looking statements also reflect the Company's current internal projections, expectations or beliefs and are based on information currently available to the Company. In some cases forward-looking information can be identified by terminology such as "may", "will", "should", "expect", "intend", "plan", "anticipate", "believe", "estimate", "projects", "potential", "scheduled", "forecast", "budget" or the negative of those terms or other comparable terminology. The estimates and assumptions of RBI underlying the forward-looking statements in this news release may prove to be incorrect. Assumptions upon which such forward-looking information is based include, among other things, completion of the Offering, successful and timely commissioning, ramp-up and production at the Québec Lithium Project; the lack of any further significant capital expenditures during the commissioning stage or to bring the hydrometallurgical process plant into production; the continuing support and cooperation of RBI's off-take partners; as well as financial predictions premised on such assumptions. Although the Company believes that the forward-looking information contained in this news release is based on reasonable assumptions, readers cannot be assured that actual results will be consistent with such statements. Accordingly, readers are cautioned against placing undue reliance on forward-looking information. RBI expressly disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, events or otherwise, except in accordance with applicable securities laws.

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