Southern Pacific Resource Corp.

Southern Pacific Resource Corp.

November 09, 2006 10:30 ET

Southern Pacific Resource Corp. Announces Amendment of Private Placement

CALGARY, ALBERTA--(CCNMatthews - Nov. 9, 2006) - Southern Pacific Resource Corp. ("Southern Pacific") (TSX VENTURE:STP) ("Southern Pacific" or the "Company") has amended the terms of the private placement which was announced previously on October 19, 2006. The private placement has been amended to include a portion of units which are comprised of flow through common shares and warrants. The units which comprise flow through shares will be priced at $0.55 per unit. Each unit will consist of one common share of Southern Pacific issued on a flow through basis and one half common share purchase warrant. Each warrant will entitle the holder thereof to purchase one common share at any time for a period of 12 months following the closing date at a price of $0.80 per common share.

The flow through unit offering will be for a maximum of $3,000,000. The terms of the previously announced private placement of subscription rights will remain unchanged other than the gross amount will include the sale of the flow through units.

The proceeds of this placement will be utilized for the previously announced acquisition of an 80% interest in 25 contiguous sections of Leismer South Oil Sands Assets lands in Townships 75 - 76, which is approximately 120 kms south of Fort McMurray, representing 16,000 acres.

Approvals and Conditions

The Proposed Transaction and private placement is subject to both shareholder approval and regulatory acceptance under the policies of the TSX Venture Exchange.

Cautionary Statements

Completion of the Proposed Transaction and financing is subject to a number of conditions, including but not limited to, TSX Venture Exchange acceptance. The Proposed Transaction cannot close until the required shareholder approval is obtained. There can be no assurance that the Proposed Combination will be completed as proposed, or at all.

Investors are cautioned that any information released or received with respect to the Proposed Transaction may not be accurate or complete and should not be relied upon. Trading in the securities of Southern Pacific should be considered highly speculative.

The TSX Venture Exchange has in no way passed on the merits of the Proposed Transaction and has neither approved of disapproved the contents of this press release.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Southern Pacific Resource Corp.
    Dave Antony
    (403) 531-1710 (Calgary, Alberta)