Africa Oil Amends Terms of Private Placement
Africa Oil Corp. has increased the size of and amended the terms of the private placement announced on August 6, 2008. The Company will now sell on a non-brokered, private placement basis, an aggregate of up to 2.6 million Units of the Company at a price of Cdn $5 per Unit for gross proceeds of up to Cdn $13 million.
Each Unit is comprised of one common share and one-half of a share purchase warrant. Each whole warrant is exercisable into one common share of the Company over a period of two years at a price of Cdn $5.40 per share. A 5% finder's fee may be payable on a portion or all of the private placement. Net proceeds of the private placement will be used towards ongoing work at the Company's Nogal and Dharoor oil and gas concessions in Puntland, Somalia as well as for general working capital purposes. Shares issued pursuant to the private placement will be subject to a four month hold period.