Sterling Resources Ltd. has announced the closing of its previously announced offering of 9,804,000 Units at a price of $2.55 per Unit. The Underwriters also exercised in full their over-allotment option to acquire an
Each Unit consists of one common share of Sterling and one-half of one common share purchase warrant. The Offering was made on a bought deal basis through a syndicate of underwriters led by Wellington West Capital Markets Inc., and also included Canaccord Capital Corporation, Maison Placements Canada Inc. and RBC Dominion Securities Inc.
Each Warrant will be exercisable by the holder for one additional Share (a "Warrant Share") until 4:30 p.m. (Toronto time) on August 6, 2009 at a price of $3.25 per Warrant Share. In the event that Sterling's shares trade at a closing price on the TSX Venture Exchange of greater than $4.00 for period of 15 consecutive trading days at any time after December 7, 2008, Sterling may accelerate the expiry date of the Warrants by giving notice to the holders and the Warrants will then expire on the 30th day after the date on which notice is given by Sterling.
The net proceeds of this Offering of approximately $27 million after fees and expenses will be used towards exploration and appraisal drilling programs in the U.K. North Sea and Romania in order to complete the pre-development work in anticipation of filing development plans early in 2009.
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