CALGARY, ALBERTA–(Marketwired – May 27, 2016) – Traverse Energy Ltd. (the “Corporation”) (TSX VENTURE:TVL) announces that it has closed its previously announced brokered private placement (the “Private Placement“) of common shares issued as “flow-through shares” (the “Shares“) under the Income Tax Act (Canada) (the “Tax Act“). Acumen Capital Finance Partners Limited (the “Agent“) acted as the sole and exclusive agent of the Corporation in the Private Placement.
The Corporation issued (i) 2,379,633 Shares eligible for the renunciation of “Canadian exploration expenses” within the meaning of the Tax Act at $0.45 per Share and (ii) 4,316,500 Shares eligible for the renunciation of “Canadian development expenses” within the meaning of the Tax Act at $0.40 per Share for aggregate gross proceeds of approximately $2.8 million. These Shares are subject to a hold period under applicable securities law and the rules of the TSX Venture Exchange (“TSXV“) until September 28, 2016.
Insiders of the Corporation participated in the Private Placement and purchased an aggregate of 992,406 Shares or 15% of the Shares issued under the Private Placement.
The Corporation intends to use the proceeds from the Private Placement to fund qualifying expenditures under the Tax Act on the company’s oil and gas properties with a focus on the Coyote/Michchi properties located 160 km north east of Calgary.
The Corporation paid a commission in the amount of $118,664 to the Agent.
About the Corporation
The Corporation is a junior oil and natural gas exploration and production company in Alberta. The common shares of the Corporation currently are listed on the TSXV under the trading symbol “TVL”. There are currently 78,644,402 Shares issued and outstanding.