Blackbird Energy Inc. announced that drilling operations on the first Success formation well at its Mantario oil project in West Central Saskatchewan commenced Tuesday, with the well to spud from a surface location at15d-6-26-24W3 to a total depth of 1,000 meters.
Garth Braun, president and CEO of Blackbird stated, "We are pleased to launch this financing at what we believe to be an exciting time for Blackbird. Net proceeds will be used to support the ongoing drilling operations on the Mantario Well, the re-entry of a well on our Bromhead project and to supplement cash on hand for working capital purposes."
Blackbird also announced that it intends to carry out a non-brokered private placement for gross proceeds of up to $1,500,000. The Private Placement will consist of flow-through shares at a price of $0.10 per Flow-Through Share for gross proceeds of up to $500,000, and non-flow through units at a price of $0.09 per Unit for gross proceeds of up to $1,000,000.
Each Unit will consist of one common share and one-half of one common share purchase warrant, with each whole warrant entitling the holder to purchase one additional common share at a price of $0.15 per Warrant Share for a period of 24 months following the closing date. The Warrants will be subject to an early acceleration provision which provides for the mandatory exercise or expiry of the Warrants in the event Blackbird's shares close at $0.30 or higher for at least 10 consecutive trading days. In such event, the Warrants will accelerate and expire 30 days after the Company has given notice of the acceleration to the Warrant holders.
Blackbird intends to pay finder's fees in the form of an 8 percent cash commission and 8 percent finder's warrants in connection with the Private Placement. The Private Placement is subject to approval from the TSX Venture Exchange and all of the securities issued pursuant to the Private Placement will be subject to a four-month hold period from the date of issue.
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