Canadian Phoenix Helps Marble Point Complete Fourth Tranche

Canadian Phoenix Resources Corp. announced that, with the assistance of Canadian Phoenix, Marble Point Energy Ltd. has completed the fourth tranche of its previously announced private placement of preferred shares for gross proceeds of $5,000,000 by the issuance of 7,692,308 preferred shares at the price of $0.65 per share. The proceeds from this closing will be used by Marble Point as working capital for operations. Marble Point has now received subscription funds totalling $49,449,999 under the MPE Private Placement.

In addition, Marble Point has issued a promissory note in the amount of $275,000 to an arm's length finder acting on its behalf in connection with the MPE Private Placement, this amount being equal to 5.5% of the amount raised. Marble Point has the right to assign this note to Canadian Phoenix concurrently with the successful completion of the Marble Point Transaction, at which time Canadian Phoenix shall, subject to acceptance by the TSX Venture Exchange, issue 1,833,333 units ("Units") of Canadian Phoenix in satisfaction of the indebtedness under the note. Each Unit shall be comprised of one Canadian Phoenix Share and one non-transferable Canadian Phoenix Share purchase warrant ("Warrant"). Each Warrant will entitle the holder thereof to purchase one additional Canadian Phoenix Share at a price of $0.20 on or before the earlier of the date that is:

  • two years from the date of the completion of the Marble Point Transaction; and
  • 30 days after the giving of notice of early termination by Canadian Phoenix of the Warrants, which notice may be given by Canadian Phoenix, in its sole discretion, if the closing price of the Canadian Phoenix Shares on the TSX Venture Exchange is at least $0.30 for a minimum of 30 consecutive trading days (whether or not trading occurs on such days) (the "Triggering Event") within 30 days of the Triggering Event by written notice to the finder that the exercise period of the Warrant has been reduced to 30 days following delivery of such notice.

The MPE Private Placement is being completed in conjunction with the proposed acquisition by Canadian Phoenix of a controlling interest in Marble Point (the "Marble Point Transaction"). Refer to the management information circular (the "Circular") of Canadian Phoenix that has been mailed to Canadian Phoenix's shareholders for additional information and disclosure regarding the Marble Point Transaction, the MPE Private Placement, the transactions with Serrano Energy Ltd. and Blue Parrot Energy Inc. and the other matters. The Circular is also available on Canadian Phoenix's SEDAR profile at