Loon Closes Private Placement
|Monday, May 10, 2004
Loon Energy Inc. has closed a private placement of 10,000,000 common shares at $0.18 per common share for gross proceeds of $1,800,000. The placement was non-brokered. Certain insiders of Loon sold a total of 5,748,500 common shares through the facilities of the TSX Venture Exchange at an aggregate average price of $0.196. Those insiders and certain other insiders of Loon purchased 6,005,000 of the common shares offered for sale in the private placement. Loon now has 45,535,708 common shares issued and outstanding.
Proceeds of the issue will be used to fund Loon's portion of a well in eastern Slovenia disclosed in news release dated April 26, 2004 and for general corporate purposes. The private placement is subject to regulatory approval. Loon announced on May 4th that a commitment for a deep well, to evaluate the gas potential underlying its joint venture area in eastern Slovenia, had been negotiated with WPN Resources Limited. WPN is a public company trading on the TSX Venture Exchange under symbol WPR.
Loon is focused on exploration and development projects in Slovenia and other countries in south-central Europe. Slovenia is bounded by Croatia (south), Hungary (east), Austria (north) and Italy (west). The principal project area is located in eastern Slovenia near to the borders with Hungary and Croatia approximately 210 kilometres south of Vienna, Austria and 180 kilometres northeast of Ljubljana, the capital of Slovenia. Slovenia joined NATO in April, 2004 and joined the European Union ("EU") on May 1st of this year.