CALGARY, ALBERTA--(Marketwired - Jan. 5, 2016) -
NOT FOR DISTRIBUTION TO THE U.S.A. NEWS WIRE SERVICES OR FOR DISSEMINATION TO THE U.S.A.
Groundstar Resources Limited (TSX VENTURE:GSA) (the "Company") is pleased to announce that it has closed its previously announced financing through the issuance of 4,440,000 common shares in the capital of the Company issued on a "flow-through" basis within the meaning of the Income Tax Act (Canada) (the "Flow-Through Shares") at a price of $0.05 per Flow-Through Share by way of a non-brokered private placement for total gross proceeds of $222,000 (the "Offering"). The Company paid cash finders' fees totaling $12,040 in connection with the private placement and issued broker warrants exercisable into a total of 240,800 common shares in the capital of the Company for a period of 18 months from the closing date at an exercise price of $0.08 per share.
The Company expects to use the net proceeds from the Offering to further the exploration and development activities of its oil and gas properties. The proceeds received by the Company from the sale of the Flow-Through Shares are expected to be used to incur eligible Canadian Exploration Expenses ("CEE") which will be renounced in favour of subscribers for the 2015 taxation year.
The Flow-Through Shares were issued on a private placement basis and are subject to a statutory hold period of four months and a day from the closing date of the Offering, expiring on May 1, 2016.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
About Groundstar Resources Limited
Incorporated in 1968, Groundstar Resources Limited is a publicly traded oil and gas company actively growing a portfolio targeting producing oil and gas assets with development opportunities and exploration upside. The Company's current portfolio of resource assets provides both near term and longer term potential. Groundstar is quoted and trades under the ticker symbol "GSA" on the TSX Venture Exchange.
This press release contains forward-looking statements within the meaning of applicable securities laws, including expectations regarding the anticipated use of proceeds from the Offering. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. These statements are subject to certain risks and uncertainties and may be based on assumptions that could cause actual results to differ materially from those anticipated or implied in the forward-looking statements. These risks include, but are not limited to: the risks associated with the oil and gas industry (e.g. operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve and resource estimates; the uncertainty of estimates and projections relating to production, costs and expenses and health, safety and environmental risks), commodity price and exchange rate fluctuation, uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures and uncertainties regarding whether final regulatory approval for the Offering will be received and if received, on the timelines expected, as well as the intended use of the net proceeds of the Offering. The Company's forward-looking statements are expressly qualified in their entirety by this cautionary statement. The forward-looking statements contained in this press release are made as of the date hereof and the Company undertakes no obligations to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
Neither the 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 press release.
Source: Marketwired (Canada)
(January 5, 2016 - 3:42 PM EST)
News by QuoteMedia