Avery Resources Closes Financings for Gross Proceeds of $4.3 Million CDN
Avery Resources has completed its brokered private placement and short form offering document financing. Canaccord Capital Corporation acted as agent for both financings and the Corporation issued an aggregate of 5,000,000 common shares at $0.40 per share pursuant to the SFOD Financing and 5,750,000 common shares at $0.40 per share pursuant to the Private Placement raising gross proceeds of $4,300,000. The Private Placement was for 5,000,000 common shares with an over allotment option for an additional 750,000 common shares. The Private Placement including the over allotment was fully subscribed. As previously announced, Sequoia Oil & Gas Ltd., an existing shareholder of the Corporation, subscribed for $1,800,000 in the Private Placement, which is the amount required to maintain its equity interest in the Corporation. No commission was paid by the Corporation for that subscription from Sequoia Oil & Gas Ltd.
In addition to an 8 percent cash commission on certain of the proceeds, the Corporation issued to the Agent, 75,000 common shares as a corporate finance fee and common share purchase broker warrants, entitling the holder thereof to acquire an aggregate 500,000 common shares at an exercise price of $0.40 per share until February 24, 2007.
The common shares issued pursuant to the Private Placement and 100,000 common shares issued pursuant to the SFOD Financing are subject to a four month hold which expires on June 25, 2006.
Avery Resources is an international junior oil and gas exploration
company based in Calgary, Alberta that trades on the TSX Venture Exchange. The
Corporation is committed to growing shareholder value through international
acquisitions and exploration. The Corporation's primary interest is in
Australia, where the Corporation is building a significant presence through
partnerships, drilling and acquisitions.