Magnum Energy Announces Private Placement Financing of Up to $7,000,000
November 15 2010 - 11:52AM
Marketwired
MAGNUM ENERGY INC. (the "Company") (TSX VENTURE: MEN) is pleased to
announce that, subject to the approval of the TSX Venture Exchange,
it has arranged a non-brokered private placement (the "Private
Placement") of up to 22,222,222 non-flow-through units ("Unit") at
a price of $0.27 per Unit for gross proceeds of up to $6,000,000.
Each Unit will consist of one Class A Voting common share in the
capital of the Company (the "Shares") and a half warrant. Each full
warrant plus $0.35 will entitle the holder to purchase one Share
within one year of issuance.
Additionally, the Company will raise up to $1,000,000 through
the issuance of up to 3,030,303 flow-through Shares at a price of
$0.33 per Share.
Proceeds from the Private Placement will be used for the
acquisition of the Viking Oil asset announced on November 3, 2010,
the drilling of horizontal wells in the Viking Oil asset, potential
land acquisitions and general working capital.
The Company may, in its sole discretion but subject to the
policies of the TSX Venture Exchange, pay a finder's fee to agents
of the Company consisting of (i) a cash fee in an amount of up to
7.0% of the proceeds raised by the agent as part of this offering
of Shares, and (ii) a number of agent's warrants, entitling the
holder thereof to purchase that number of Shares that is equal to
7.0% of the number of Units placed through the agent as part of
this offering of Units at a price of $0.27 per Share, for a period
of 12 months from the date of issuance.
About Magnum Energy Inc.
Magnum is a junior oil and gas producer with operations located
in the Western Canadian Sedimentary Basin. The Company produces
from operations in Alberta, and maintains 100% ownership of the
Sedalia gas facility in East-Central Alberta.
ON BEHALF OF THE COMPANY
Richard Nemeth, President & CEO
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Contacts: Magnum Energy Inc. Richard Nemeth President & CEO
604.218.1479 nemeth@magnumenergyinc.com www.magnumenergyinc.com
Boardmarker Group Dean Stuart 403.517.2270 dean@boardmarker.net
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