CALGARY, ALBERTA–(Marketwired – Aug. 21, 2014) – Sahara Energy Ltd. (TSX VENTURE:SAH) (Sahara) announces that it has closed the previously announced private placements with JF Investment (Hong Kong) Co., Limited (JF Investment) for the purchase by JF Investment of common shares in the capital of Sahara (Sahara Shares), for aggregate proceeds of $16.2 million. Five million Sahara Shares were acquired at $0.12 per share and 195 million Sahara Shares were acquired at $0.08 per share. Upon closing of the two transactions, JF Investment holds 69% of Sahara’s outstanding shares. As previously announced in the press release dated August 12, 2014, the directors nominated by JF Investment were elected to the board of directors of Sahara at the annual general meeting of shareholders of Sahara which was re-convened on August 12, 2014.
Sahara intends to use the net proceeds of the private placements to drill 11 new wells and to complete 9 re-perforation wells on lands currently held by Sahara, for general operations and to maintain cash flow.
Sahara understands that JF Investment is a private company based in Hong Kong. Hubei Guochuang Hi-tech Material Co., Ltd. (Guochuang), a company based in Wuhan, China and listed on the Shenzhen stock exchange, has acquired JF Investment through its wholly-owned subsidiary, Hubei GuochuangJiahua Energy Investment Co. Ltd. Guochuang is engaged in the research, development, production, and sale of modified and emulsified asphalt in China. Guochuang is at arm’s length to Sahara and to current significant shareholders of Sahara.
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Sahara Energy Ltd.
Director, President and CEO
Sahara Energy Ltd.
Chief Financial Officer