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Knol Resources Corp. Announces Private Placement Offering

March 7, 2014



By a News Reporter-Staff News Editor at Energy Weekly News -- NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES NOR FOR DISSEMINATION IN THE UNITED STATES OF AMERICA

Knol Resources Corp., (the "Corporation") (TSX VENTURE:NOL) is pleased to announce that it intends to complete a non-brokered private placement offering of 50,000,000 units of the Corporation ("Units") at a purchase price of $0.10 per Unit for total gross proceeds of $5,000,000 (the "Offering"). Each Unit shall consist of one common share in the capital of the Corporation ("Common Share") and one Common Share purchase warrant of the Corporation ("Warrant"). Each Warrant will be exercisable to purchase one Common Share at a price of $0.20 for a period of five years from the date of issuance.

Closing of the Offering is subject to the completion of formal documentation and receipt of regulatory approval, including the approval of the TSX Venture Exchange Inc. (the "Exchange"). The Corporation intends to use the net proceeds from the Offering to acquire certain oil and gas interests in Canada by way of joint venture, or other means, for exploration and development activities in the oil and gas sector as the initial part of a strategic oil and gas plan wherein this transaction is expected to be the first of additional transactions of similar structure. Remaining proceeds, if any, will be used for general corporate purposes. It is intended that the closing of the Offering will be subject to a concurrent closing of an acquisition of oil and gas interests. Further details will be provided on this initial oil and gas interest as further negotiations proceed.

Sprott Private Wealth LP and certain affiliates of Sprott Inc. (the "Finders") are expected to act as finders for the Corporation under the Offering. It is anticipated that the majority of the Units will be subscribed for by clients of the affiliates of Sprott Inc. The Corporation will pay commissions to the Finders consisting of either cash or Units, at the Finder's election, equal to 6% of gross proceeds raised from applicable subscriptions under the Offering or 6% of the number of Units issued in connection with applicable subscriptions under the Offering. The Corporation will also issue to the Finders non-transferable finder's warrants ("Finder's Warrants") equal to 6% of the number of Units issued in connection with applicable subscriptions under the Offering. Each Finder's Warrant will entitle the holder to acquire one additional Common Share at a price of $0.10 for a period of two years from the closing of the Offering.

All Common Shares, Warrants, Finder's Warrants and any Common Shares issued on exercise of the Warrants and Finder's Warrants shall be subject to a four month statutory restricted resale period from the closing of the Offering.

Keywords for this news article include: Energy, Oil & Gas, Utilities, Oil And Gas.

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Source: Energy Weekly News


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