HONG KONG, CHINA and CALGARY, ALBERTA–(Marketwired – Dec. 2, 2016) – The Board of Directors of Sunshine Oilsands Ltd. (the “Corporation” or “Sunshine“) (HKEX:2012) wishes to announce the following:
Closing of Private Placement under Specific Mandate
Reference is made to the announcements of the Corporation dated June 1, 2015, July 28, 2015, August 21, 2015, October 1, 2015, November 2, 2015, December 6, 2015, March 2, 2016, May 3, 2016, June 3, 2016, June 23, 2016, July 21, 2016, August 1, 2016, August 4, 2016 and October 24, 2016 (all Hong Kong time) (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 used 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 the remaining 98,453,334 Common Shares (the “Closing“) under the Specific Mandate at a price of HK $0.75 per Common Share (approximately CDN $0.13 per Common Share at current exchange rates). Under the Closing, the Corporation received total gross proceeds of HK $73,840,001 (approximately CDN $12.69 million at current exchange rates) for the allotment and issue of 98,453,334 Common Shares (the “Issued Shares“).
The Issued Shares represent: (i) approximately 2.03% of the total issued and outstanding Common Shares prior to the Closing; and (ii) approximately 1.99% of the total issued and outstanding Common Shares as enlarged by the 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.
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.