Business
Lochaird Energy Inc. Announces Flow-Through Financing
Lochaird Energy Inc. Announces Flow-Through Financing
About this update from Reconnaissance Energy Africa Ltd.
[{"type":"text","content":"Lochaird Energy Inc. Announces Flow-Through Financing\n\n\n\nLochaird Energy Inc. Announces Flow-Through Financing\n\nCalgary, Alberta CANADA, November 27, 2008 /FSC/ - Lochaird Energy Inc. (LEN - TSX Venture), (\"Lochaird\" or the \"Corporation\") has entered into an agreement with Northern Securities Inc. (\"Northern\" or the \"Agent\"), whereby Northern is offering to raise, on a best efforts basis, up to $2,000,000 (the \"Offering\").\n\nThe Offering will consist of the issuance of up to 8,000,000 flow-through units (the \"Units\") of the Corporation at a price of $0.25 per Unit via a Short Form Offering Document. Each Unit will consist of one common share of the Corporation (the \"Common Share\") issued on a \"flow-through\" basis and one warrant (the \"Warrant\"). Each Warrant will entitle the holder to acquire a Common Share at an exercise price of $0.30 for a period of twelve months from issuance.\n\nNorthern will receive a 10% cash commission on the gross proceeds raised in connection with the Offering. It will also, on completion of the Offering, receive broker's warrants allowing Northern to purchase that number of Agent's units (the \"Agent's Unit\") equal to 10% of the number of Units sold under the Offering, at an exercise price of $0.25 per Agent's Unit, for a period of 12 months from issuance of the broker's warrants. The Agent's Unit is comprised of one Common Share and one Common Share purchase warrant (the \"Agent's Warrant\"). Each Agent's Warrant shall entitle the holder to purchase one Common Share at a price of $0.30 for a period of 12 months from issuance from closing.\n\nThe Corporation has agreed to pay Northern a non-refundable work fee of $20,000, one half of which has been paid with the balance to be paid at closing.\n\nFunds raised from the financing will be used for exploration on Lochaird's 12 sections of land in two core areas in Manitoba. In the Tilston area, Lochaird intends to drill a second exploratory well to test a new zone and confirm the size of the Bakken and Mission Canyon zones identified in the first well. The second area at Waskada will have 3D seismic shot targeting Bakken and Mission Canyon zones as part of a previously announced farm-in agreement. Wells on these lands have previously produced 4...