Canoro Revises Financing Terms
Canoro Resources Ltd. (TSX VENTURE:CNS) has revised its agreement with Jennings Capital Inc. as lead agent, Canaccord Capital Corporation, Sprott Securities Inc., and Fraser Mackenzie Capital Limited (collectively the "Agents"). Changing market conditions has resulted in the provision for an additional 1/2 common share purchase warrant with each common share purchased. Each full warrant will be exercisable at a price of $1.30 per common share for 12 months from the date of issuance.
The Agents will now sell on a private placement agency basis up to 24,300,000 Units at $1.03 per Unit for gross proceeds of $25,029,000. Each Unit will consist of one common share and 1/2 common share purchase warrant. Canoro has also granted the Agents an over-allotment option to sell up to an additional 4,860,000 Units at $1.03 per Unit for additional gross proceeds of $5,005,800. Closing is now anticipated to occur on or about July 21, 2006.
Canoro will pay the Agents a cash commission equal to 6.5% of the gross proceeds, plus issue Agents' warrants entitling the Agents to acquire common shares equal to 6.5% of the number of units issued through this financing. Each Agents' warrant shall entitle the holder to acquire one common share at a price of $1.30 per common share for 12 months from the date of issuance.
The offering is to be made by way of applicable prospectus exemptions as provided for in the Securities Act (Alberta) and comparable provisions in other provinces and jurisdictions, as agreed to by Canoro and the Agents. The common shares issued will be subject to a four month hold period.
Use of Proceeds
Gross proceeds from this financing are planned to fund the exploration and development of Canoro's existing properties in northeast India and acquire new exploration and development opportunities in India, as well as contribute to general corporate purposes.
Canoro is a Canadian-based international oil and gas company operating in the prolific Assam/Arakan basin of northeast India. Canoro has restored production from the suspended Amguri oil and gas field. Canoro is the operator of Amguri field and has a 60% working interest. Canoro is the operator with a 65% working interest in the 1,445 km2 AA-ON/7 exploration block, and has a post-farmout 15% non-operated working interest in the 295 km2 AA-ONN 2003/02 exploration block.
Common shares of Canoro trade on the TSX Venture Exchange under the symbol 'CNS'.
- Canoro Updates on Drilling at Northeast India Exploration Block (Jan 16)
- Canoro Tests Amguri Appraisal Wells (Dec 23)
- Brownstone, Partners Plan Drilling on NW Indian Block in Q1 2009 (Jul 16)