HONG KONG, CHINA and CALGARY, ALBERTA–(Marketwired – June 3, 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 Specific Mandate
Reference is made to the announcements of the Corporation dated June 1, 2015 (Hong Kong), July 28, 2015 (Hong Kong), August 21, 2015 (Hong Kong), October 1, 2015 (Hong Kong), November 2, 2015 (Hong Kong), December 6, 2015 (Hong Kong), March 3, 2016 (Hong Kong) and May 3, 2016 (Hong Kong) (collectively, the “Announcements“) and the circular of the Corporation dated June 22, 2015 (the “Circular“), in relation to, among other matters, the proposed issue of new Class “A” Common Voting Shares (“Common Shares“) under the Specific Mandate and the connected transactions involving subscriptions for new Common Shares by connected persons. Unless the context requires otherwise, terms use herein shall have the same meanings as those defined in the Announcements and the Circular.
Sunshine is pleased to announce today that it has completed the closing of 13,333,333 Common Shares (the “Partial Closing“) under the Specific Mandate at a price of HK $0.75 per Common Share (approximately CDN $0.126 per Common Share at current exchange rates). Upon the Partial Closing, the Corporation has received total gross proceeds of HK $10,000,000 (approximately CDN $1.68 million at current exchange rates) for the allotment and issue of 13,333,333 Common Shares (the “Issued Shares“). Placement expenses are estimated to be approximately HK $100,000 (approximately CDN $16,832).
The Issued Shares represent (i) approximately 0.309% of the total issued and outstanding Common Shares prior to the Partial Closing and (ii) approximately 0.308% 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 operation costs of the West Ells project.
An announcement will be issued when the Corporation completes the closing of the remaining 400,186,667 Common Shares (HK$300,140,000 or approximately CDN $50,520,115 at current exchange rates) subscribed for by Prime Union which will be closed in one or more tranches with the last tranche closing no later than August 2, 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.