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Lochaird Energy Inc. Announces Flow-Through Offering
Lochaird Energy Inc. Announces Flow-Through Offering
About this update from Reconnaissance Energy Africa Ltd.
[{"type":"text","content":"Lochaird Energy Inc. Announces Flow-Through Offering\n\n\n\nLochaird Energy Inc. Announces Flow-Through Offering\n\nCalgary, Alberta CANADA, December 17, 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 pursuant to a Short Form Offering Document in Alberta and British Columbia and pursuant to other private placement exemptions in Ontario. Each Unit will consist of one common share of the Corporation (a \"Common Share\") issued on a \"flow-through\" basis and one-half of one Common Share purchase warrant (the \"Warrant\"). Each whole Warrant will entitle the holder to purchase a Common Share at an exercise price of $0.30 for a period of twelve months from issuance, subject to adjustments in certain circumstances.\n\nThe Corporation has agreed to pay to the Agent a cash commission equal to 10% of the gross proceeds raised under the Offering. The Agent will also be paid a cash corporate finance fee of $20,000. In addition, the Corporation will grant to the Agent a non-transferable option entitling the Agent to purchase such number of units (the \"Agent Units\") as is equal to 10% of the aggregate number of Units sold under the Offering for a period of 12 months from the closing date of the offering, at an exercise price of $0.25 per Agent Unit. Each Agent Unit shall be comprised of one non flow-through common share of the Corporation and one-half of one common share purchase warrant of the Corporation (the \"Agent Warrants\"). Each whole Agent Warrant shall entitle the Agent to acquire one additional common share of the Corporation at an exercise price of $0.30 per share for a period of 12 months from the date of issuance of the Agent Warrant.\n\nFunds raised from the Offering 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 siz...