TAG Oil Enters Private Placement
TAG Oil Ltd. has entered into an agreement with Canaccord Capital Corporation for the sale, on a bought deal basis, of 9,230,800 common shares at a price of $1.30 per Common Share for gross proceeds of approximately $12 million. TAG has also granted Canaccord an option, exercisable at any time up to 72 hours prior to closing, to purchase up to an additional 2,307,700 Common Shares on the same terms and conditions for additional gross proceeds of up to approximately $3 million. In connection with the financing Canaccord will receive a commission and 400,000 broker warrants exercisable at a price of $1.30 for a period of one year from the date of closing.
TAG has also approved a non-brokered private placement to accredited investors of up to 2,307,700 Common Shares at a price of $1.30 per Common Share for additional gross proceeds of up to approximately $3 million, if fully subscribed.
Net proceeds of the bought deal financing and the non-brokered private placement will be used to continue the Company's exploration, drilling and seismic surveys in New Zealand as well as for working capital.
The Common Shares will be eligible for sale in Alberta, British Columbia and Ontario and such other jurisdictions as TAG and Canaccord may agree. The Common Shares have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), and will not be offered or sold within the United States or to or for the account or benefit of U.S. persons except in certain transactions exempt from the registration requirements of the U.S. Securities Act.
The bought deal financing and the non-brokered private placement are subject to the completion of definitive agreements and regulatory approvals, with closing expected to occur on or about September 22, 2005.
TAG Oil Ltd. is a Canadian-based exploration company that is exploring for oil and natural gas in New Zealand.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
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