HONG KONG, CHINA and CALGARY, ALBERTA–(Marketwired – April 27, 2016) – The Board of Directors of Sunshine Oilsands Ltd. (the “Corporation” or “Sunshine“) (HKSE:2012) wishes to announce the following:
Partial Closing of Private Placement under General Mandate
Reference is made to the announcement of the Corporation dated March 16, 2016 (Hong Kong Time) / March 15, 2016 (Calgary Time) (the “Announcement“) in relation to the proposed issue of a total of 558,823,500 new Class “A” Common Voting Shares (“Common Shares“) to Bright Hope Global Investments Limited under the General Mandate (as defined in the Announcement).
Sunshine is pleased to announce today that it has completed the closing of 88,234,000 Common Shares (the “Partial Closing“) under the General Mandate (as defined in the Announcement) at a price of HK $0.34 per Common Share (approximately CDN $0.055 per Common Share at current exchange rates). Upon the Partial Closing, the Corporation has received total gross proceeds of HK $29,999,560 (approximately CDN $4,879,247 at current exchange rates) for the allotment and issue of 88,234,000 Common Shares (the “Issued Shares“). Placement expenses are estimated to be approximately HK $700,000 (approximately CDN $113,851). In addition, an introduction fee of HK$599,991.20 (approximately CDN $97,584.93 at current exchange rates) being 2% of the gross proceeds of the Partial Closing has been incurred in relation to the Partial Closing.
The Issued Shares represent (i) approximately 2.09% of the total issued and outstanding Common Shares prior to the Partial Closing and (ii) approximately 2.04% of the total issued and outstanding Common Shares as enlarged by the Partial Closing.
The Corporation intends to apply the net proceeds from the Issued Shares (i) for general working capital of the Corporation and (ii) as funds for future development of the existing business of the Corporation, including funding the development and operation costs of the West Ells project.
An announcement will be issued when the Corporation completes the closing of the remaining 470,589,500 Common Shares (HK$160,000,430 or CDN $26,023,100 at current exchange rates) subscribed for by Bright Hope Global Investments Limited which will be closed in one or more tranches with the last tranche closing no later than May 14, 2016.
By Order of the Board of Sunshine Oilsands Ltd.
Sun Kwok Ping
Executive Chairman
ABOUT SUNSHINE OILSANDS LTD.
The Corporation is a Calgary based public corporation listed on the Hong Kong Stock Exchange since March 1, 2012. The Corporation is focused on the development of its significant holdings of oil sands leases in the Athabasca oil sands region. The Corporation owns interests in approximately one million acres of oil sands and petroleum and natural gas leases in the Athabasca region. The Corporation is currently focused on executing milestone undertakings in the West Ells project area. West Ells has an initial production target rate of 5,000 barrels per day.