CALGARY, ALBERTA (March 22, 2016) – Pennine Petroleum Corporation (TSX-Venture: PNN) (“Pennine” or the “Corporation”) is pleased to announce that the Corporation will be undertaking a non-brokered financing of up to 50,000,000 units for proceeds of C$1,500,000. Each unit is offered at C$0.03, and shall consist of one common share (“common share”), and one common share purchase warrant (“warrant”) with an exercise price of C$0.05 for a period of one year.
Proceeds from this financing will be used for the following items:
- $1,100,000 to enact and meet the terms of a production sharing agreement for the Velca Block in Albania;
- $200,000 for offering costs; and
- $200,000 for working capital.
“We are very pleased and excited to continue the advancing of items related to the Velca Block in Albania,” says Pennine president and CEO John Garden. “The Velca Block provides the foundation to build an emerging energy firm in Albania, and will open up additional opportunities in developing the natural resource sector in this nation.”
Adds Mr. Garden: “Our team’s significant experience and expertise in Albania will contribute to the continued success of Pennine. We thank our shareholders and partners for their support and look forward to developments in the coming months.”
As part of this non-brokered financing, warrants are subject to an acceleration clause. This clause states that if, four months and one day after the warrants are issued, the closing price of the common shares of the Corporation, on the principal market on which such shares trade, is equal to, or exceeds, C$0.20 for 20 consecutive trading days (with the 20th such trading date hereafter referred to as the “Eligible Acceleration Date”), the warrant expiry date shall accelerate to a date 20 calendar days after issuance of a press release by the Corporation announcing the reduced warrant term—provided, no more than five business days following the Eligible Acceleration Date, that:
- the press release is issued; and
- notices are sent to all warrant holders.
This financing is subject to final TSX Venture Exchange approval. Common shares and warrants are subject to a four-month hold period.
The Velca Block is located 10 kilometres southeast of the port city of Vlore, in southern Albania, and covers an area of 153,215 acres (239 square miles, or 620 square km). The hydrocarbon reservoirs associated with the Velca Block are Ionian subthrust carbonates, similar in structure to reservoirs of the foothills of western Alberta.
On Nov. 17, 2015, Pennine received notification from licensee Albpetrol Sh. A. (“Albpetrol”), the national oil company of Albania, that Pennine had been confirmed by the Republic of Albania’s Ministry of Energy and Industry as the successful bidder for the Velca Block.
On Jan. 11, 2016, the Corporation announced the appointment of Richard Wadsworth, P. Eng, to its board of directors. Mr. Wadsworth is the former president and director of Bankers Petroleum Ltd., when Bankers initiated activities in Albania.
On Feb. 17, 2016, the Corporation announced it had signed the main terms and conditions of a production sharing agreement for the Velca Block with Albpetrol.
Additional details related to Pennine’s projects in Albania and Canada can be viewed on the Corporation’s website at: www.penninecorp.com.
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