Sterling To Receive $14.2 Million Equity Investment From RBS
Sterling Resources has entered into an agreement with The Royal Bank of Scotland (RBS), to issue by way of private placement, 7,109,900 common shares at a subscription price of CDN $2.00 per share for proceeds of CDN $14,219,800 ((GBP)7-million).
Closing of the non-brokered financing is subject to regulatory approval and is expected to occur on or about January 15, 2008.
RBS's investment in Sterling is based on a strong belief in Sterling's experienced management team and significant upside potential in its portfolio, with its primary assets in the UK North Sea and offshore Romania. The investment is to be used primarily towards financing the Company's 2008 appraisal well drilling program.
Following the private placement, Sterling's CFO, Ian Hornby-Smith said, "The addition of RBS into our shareholder group will bring all the benefits that come from an association with a large and well respected global bank which understands the UK North Sea in particular. In addition, it will diversify our shareholders internationally, and provide a natural avenue for future debt financing as we move into the appraisal and development phase of our strategy."
Hurbinder Mudan, Head of Oil & Gas, Project Finance for RBS, in response, said, "We are delighted to be given the opportunity to provide this financing to Sterling in support of its upstream developments. This is a milestone transaction for Sterling and places the company in a strong position for growth. We look forward to continuing our relationship with the company and we thank the company for this opportunity which recognises RBS's market-leading position in the North Sea investment arena."
RBS will next engage in discussions with Sterling on providing debt facilities to be used to assist the Company in purchasing long lead items associated with moving its assets into the development stage.
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