CALGARY, May 5, 2016 /CNW/ – Yangarra Resources Ltd. (“Yangarra” or the “Corporation”) (TSX:YGR) announces it has entered into an equity financing agreement, on a bought deal basis, with AltaCorp Capital Inc., as lead underwriter and including Acumen Capital Finance Partners Limited, Clarus Securities Inc., Dundee Capital Markets, Industrial Alliance Securities Inc., Paradigm Capital Inc. and Raymond James Ltd (collectively, the “Underwriters”).
Under the terms of the agreement, Yangarra will issue 10,000,000 common shares (“Common Shares”) at a price of $1.00 per Common Share for gross proceeds of $10,000,000. The Underwriters will also have the option, exercisable in whole or in part, to acquire up to an additional 1,500,000 Common Shares at a price of $1.00 per Common Share at any time from closing of the Offering and ending 30 days following the closing date for additional gross proceeds of up to $1,500,000.
The current price environment has presented Yangarra with a number of opportunities including farm-ins, land acquisitions, drilling opportunities, infrastructure initiatives and equipment purchases. The financing will allow Yangarra to take advantage of more of these opportunities and set the stage for an exponential increase in the value of the Corporation in a recovery.
The financing is expected to close on or about May 24, 2016 and is subject to approval of the TSX, receipt of all necessary regulatory approvals and other customary conditions.