NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAWS.
STORM RESOURCES LTD. (“Storm“) (TSX VENTURE:SRX) is pleased to announce that, in connection with its previously announced bought-deal financing, Storm and the a syndicate of underwriters led by FirstEnergy Capital Corp. and including National Bank Financial Inc., Peters & Co. Ltd., Macquarie Capital Markets Canada Ltd., and RBC Capital Markets (collectively the “Underwriters“) have agreed to increase the size of the financing. Storm will now issue, on a bought deal basis, 12,580,000 common shares (“Common Shares“) of Storm, at a price of $1.88 per Common Share, for aggregate gross proceeds of $23,650,400 (the “Bought Deal Financing“). Storm is also increasing the size of its previously announced non-brokered private placement to be completed contemporaneously with the Bought Deal Financing. Storm will now issue up to 3,000,000 Common Shares to certain investors identified by Storm, including directors, officers, and employees of Storm, at a price of $1.88 per Common Share, for aggregate proceeds of up to $5,640,000 (the “Non-Brokered Financing“, and together with the Bought Deal Financing, the “Offering“). Aggregate gross proceeds from the Offering are up to $29,290,400 with up to 15,580,000 Common Shares being issued.
Proceeds of the Offering will be used primarily to fund Storm’s capital investment program in the Umbach area of north eastern British Columbia and for general working capital purposes. The Common Shares issuable pursuant to the Bought Deal Financing will be offered in all provinces of Canada by way of a short form prospectus. The Common Shares issuable pursuant to the Non-Brokered Financing will be offered by way of private placement exemptions in all of the provinces of Canada and will be subject to a four-month hold period under applicable Canadian securities laws.
Closing is expected to occur on or about May 1, 2013 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange.
The securities 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. This news release does not constitute an offer to sell or the solicitation of any offer to buy nor will there be any sale of these securities in any province, state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such province, state or jurisdiction.
Storm began operations in August, 2010, is headquartered in Calgary, Alberta and is active in the Horn River Basin and Umbach areas of north eastern British Columbia, and in the Grande Prairie area of north western Alberta.
READER ADVISORIES
The information in this press release contains certain forward-looking statements. These statements relate to future events or our future performance. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as “seek”, “anticipate”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “predict”, “potential”, “targeting”, “intend”, “could”, “might”, “should”, “believe”, “would” and similar expressions. In particular, forward looking statements in this press release includes, but is not limited to: the use of proceeds of the Offering, Storm’s capital program, the anticipated closing date of the Offering and the receipt of required regulatory and third party approvals. These statements involve substantial known and unknown risks and uncertainties, certain of which are beyond Storm’s control, including: the impact of general economic conditions; industry conditions; changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced; fluctuations in commodity prices and foreign exchange and interest rates; stock market volatility and market valuations; volatility in market prices for oil and natural gas; liabilities inherent in oil and natural gas operations; uncertainties associated with estimating oil and natural gas reserves; competition for, among other things, capital, acquisitions, of reserves, undeveloped lands and skilled personnel; incorrect assessments of the value of acquisitions; changes in income tax laws or changes in tax laws and incentive programs relating to the oil and gas industry; geological, technical, drilling and processing problems and other difficulties in producing petroleum reserves; and obtaining required approvals of regulatory authorities, including the approval of the TSX Venture Exchange. The intended use of proceeds of the Offering by Storm may change if the board of directors of Storm determines that it would be in the best interests of Storm to deploy the proceeds for some other purpose. Storm’s actual results, performance or achievement could differ materially from those expressed in, or implied by such forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur or, if any of them do, what benefits that Storm will derive from them. The forward-looking statements contained in this press release are made as of the date hereof and Storm undertakes no obligation to publicly update or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless required by applicable securities laws.
Storm Resources Ltd.
Brian Lavergne
President and Chief Executive Officer
(403) 817-6145
Storm Resources Ltd.
Donald McLean
Chief Financial Officer
(403) 817-6145
Storm Resources Ltd.
Carol Knudsen
Manager, Corporate Affairs
(403) 817-6145
www.stormresourcesltd.com