CALGARY, AB–(Marketwired – March 23, 2016) – Kelt Exploration Ltd. (“Kelt” or the “Company”) (TSX: KEL) will issue, by way of private placement, 4.7 million common shares on a “flow-through” basis in respect of Canadian Development Expenses (“CDE”) at a price of $4.70 per share resulting in gross proceeds of $22.1 million (the “Private Placement”).
PearTree Securities Inc., an exempt market dealer, will provide certain services to Kelt in respect of the placement of 3.9 million flow-through common shares under the Private Placement.
The Private Placement will also include the subscription by certain directors, officers and employees of the Company, along with certain other subscribers, to purchase the remaining 0.8 million flow-through common shares on a non-brokered basis. The Private Placement is expected to close on or about April 7, 2016.
Proceeds from the Private Placement will be used to partially finance the Company’s drilling and completion expenditures during the remainder of 2016.
Kelt shall, pursuant to the provisions in the Income Tax Act (Canada), incur eligible CDE (the “Qualifying Expenditures”), after the closing date and prior to December 31, 2016 in the aggregate amount of not less than the total amount of the gross proceeds raised from the issue of the subject flow-through common shares. Kelt shall renounce the Qualifying Expenditures so incurred to the purchasers of the flow-through common shares on or prior to December 31, 2016.
The Private Placement is subject to certain conditions including normal regulatory approvals and specifically, the approval of the Toronto Stock Exchange. The common shares issued in connection with the Private Placement will be subject to a statutory hold period of four months plus one day from the date of completion of the Private Placement, in accordance with applicable securities legislation.
This press release does not constitute an offer to sell or a solicitation of any offer to buy the common shares in the United States. The common shares have not been and will not be registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of such Act.
About Kelt
Kelt is a Calgary, Alberta, Canada-based oil and gas company focused on exploration, development and production of crude oil and natural gas resources, primarily in west central Alberta and northeastern British Columbia.