CALGARY, ALBERTA–(Marketwired – Nov. 27, 2014) –
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES
Tuscany Energy Ltd. (“Tuscany” or the “Corporation”) (TSX VENTURE:TUS) is pleased to announce that it has closed the final tranche of its previously announced non-brokered private placement (the “Private Placement”) of common shares of the Corporation issued on a flow-through basis in respect of Canadian development expenses (the “CDE FT Shares”). In this tranche, the Corporation has issued an aggregate of 1,412,000 CDE FT Shares at a price of $0.44 per CDE FT Share for aggregate gross proceeds of approximately $620,000. The Corporation paid an aggregate of $25,670 in finder’s fees.
Humboldt Capital Corporation (“Humboldt”) purchased approximately $118,000 or 267,700 of the CDE FT Shares not otherwise subscribed for by other purchasers. Robert W Lamond (“Lamond”), the Chairman, President and Chief Executive Officer of both Tuscany and Humboldt, owns 72% of the outstanding shares of Humboldt. Lamond and Humboldt own approximately 16.8 million common shares of Tuscany (representing approximately 36% of Tuscany’s outstanding shares).
The securities issued in this tranche of the Private Placement are subject to a four-month hold period under applicable securities laws, which hold period expires on March 27, 2015.
Tuscany will use the proceeds of the Private Placement to incur Canadian Development Expense and will renounce the expenses to subscribers of the CDE FT Shares effective on or before December 31, 2014.
Drilling of the next horizontal development well at Macklin North 91/11-33-39-28W3M, is planned to commence on November 27, 2014 and Tuscany will use the expenses to renounce to subscribers of the CDE FT Shares.
The Macklin North 91/11-33-39-28W3M well offsets the Macklin North 91/1-33-39-28W3M well, which Tuscany has recently completed drilling and anticipates will be placed on production during the first week of December.
The securities offered have not been and will not be registered under the United States Securities Act of 1933, as amended and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirement. 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.
Tuscany is a heavy oil development and production company with reserves, land holdings and production in Canada. The Company’s principal focus is the exploitation of oil resources in Alberta and Saskatchewan through horizontal drilling. The majority of the Company’s revenue is generated from oil sales in Saskatchewan. The proceeds of the private placement will be used in Tuscany’s development drilling program in Saskatchewan.
ADVISORY: Certain information in this news release, including the use of the proceeds to incur Canadian Development Expenses, constitute forward-looking statements under applicable securities laws. Although Tuscany believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them because Tuscany 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 final closing of the Private Placement could be delayed. The final closing of the Private Placement will not be completed at all if some condition to the closing is not satisfied. Accordingly, there is a risk that final closing of the Private Placement will not be completed within the anticipated time or at all. The intended use of the proceeds of the Private Placement by Tuscany might change if the board of directors of the Corporation determines that it would be in the best interests of Tuscany to deploy the proceeds for some other purposes. The forward-looking statements contained in this news release are made as at the date of this news release and the Corporation does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Robert W. Lamond
Chairman & CEO
(403) 269-9890 (FAX)
Tuscany Energy Ltd.
Charles A Teare
Executive Vice President CFO
(403) 269-9890 (FAX)