HONG KONG, CHINA and CALGARY, ALBERTA–(Marketwired – June 22, 2016) – SUNSHINE OILSANDS LTD. (a corporation incorporated under the Business Corporations Act of the Province of Alberta, Canada with limited liability) (HKSE:2012)
By Order of the Board of Sunshine Oilsands Ltd.
Sun Kwok Ping, Executive Chairman
Hong Kong, June 23, 2016
Calgary, June 22, 2016
As at the date of this announcement, the Board consists of Mr. Kwok Ping Sun, Mr. Hong Luo and Dr. Qi Jiang as executive directors; Mr. Michael John Hibberd, Mr. Hok Ming Tseung, Mr. Jin Hu and Mr. Jianzhong Chen as non-executive directors; and Mr. Raymond Shengti Fong, Mr. Robert John Herdman, Mr. Gerald Franklin Stevenson and Mr. Zhefei Song as independent non-executive directors.
* For identification purposes only
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), May 3, 2016 (Hong Kong) and June 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 40,000,000 Common Shares (the “Partial Closing“) under the Specific Mandate at a price of HK $0.75 per Common Share (approximately CDN $0.124 per Common Share at current exchange rates). Upon the Partial Closing, the Corporation has received total gross proceeds of HK $30,000,000 (approximately CDN $4.96 million at current exchange rates) for the allotment and issue of 40,000,000 Common Shares (the “Issued Shares“). Placement expenses are estimated to be approximately HK $100,000 (approximately CDN $16,520).
The Issued Shares represent (i) approximately 0.911% of the total issued and outstanding Common Shares prior to the Partial Closing and (ii) approximately 0.903% 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 360,186,667 Common Shares (HK$270,140,000 or approximately CDN $44,627,635 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.
Previous Extensions of the Subscription by Prime Union
Reference is made to the announcement of the Corporation dated May 3, 2016 (Hong Kong) wherein the Corporation announced the most recent extension of the subscription by Prime Union (the “Subscription“) to August 2, 2016. As mentioned above, the remaining Common Share under the Subscription will close in one or more tranches with the final tranche closing no later than August 2, 2016. The Corporation confirms that the Board will not consider any further extensions to the Subscription. The Corporation also wishes to confirm that a number of factors have contributed to the Board’s decision to extend the Subscription. The Corporation is pursuing a number of financing initiatives including refinancing its outstanding US $200 million principal amount secured notes (the “Notes“) as well as potentially extending the maturity date of the Notes. Extending the Subscription has allowed the Corporation to maintain flexibility to address potential requirements necessary to refinancing or extending the Notes. In addition, extending the Subscription has provided flexibility to stabilize trading in the Common Shares of the Corporation, which has further enhanced the Corporation’s efforts to pursue refinancing and extending of the Notes while increasing overall confidence in the Corporation by the Corporation’s various stakeholders. All of the foregoing reasons to extend the Subscription have supported the original intent of the Subscription which is to increase the working capital available to the Corporation
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.