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Tuktu Resources Ltd. Announces a Brokered Private Placement of $2.0 Million of Units and Farm-in Agreement
Calgary, Alberta--(Newsfile Corp. - April 17, 2024) - Tuktu Resources Ltd. (TSXV: TUK) (" Tuktu...
About this update from Tuktu Resources Ltd
[{"type":"text","content":"Tuktu Resources Ltd. Announces a Brokered Private Placement of $2.0 Million of Units and Farm-in AgreementCalgary, Alberta--(Newsfile Corp. - April 17, 2024) - Tuktu Resources Ltd. (TSXV: TUK) (\"Tuktu\" or the \"Company\") announces a brokered private placement of up to 40,000,000 units of the Company (the \"Units\") at a price of $0.05 per Unit (the \"Issue Price\") for gross proceeds of up to $2,000,000 (the \"Offering\"). The Offering is being conducted by Canaccord Genuity Corp as the sole agent and sole bookrunner (the \"Agent\").Each Unit shall be comprised of one common share in the capital of the Company (a \"Common Share\") and one Common Share purchase warrant of the Company (a \"Warrant\"). Each Warrant shall entitle the holder thereof to purchase one Common Share at an exercise price of $0.075 for a period of 36 months from closing of the Offering. The Company has granted the Agent an option (the \"Agent's Option\") to offer for sale up to an additional 15% of the number of Units sold in the Offering, which Agent's Option is exercisable, in whole or in part, at any time up to 48 hours prior to the closing of the Offering.The Common Shares and Warrants underlying the Units issuable in the Offering will be subject to the standard statutory four-month-plus-one-day hold period.The net proceeds of the Offering are expected to be used for working capital purposes and to fund development projects, including well recompletions (described below) and workovers. The capital program is anticipated to commence shortly after the closing of the Offering and the final closing of the acquisition of light crude oil assets (the \"Assets\") announced on October 18, 2023 (\"Acquisition 3\"). The Company intends to test a new prospective conventional reservoir within the Banff Formation, which was drilled by a previous operator but never tested. In other areas of the basin, this zone has yielded significant liquids volumes. The Company also intends to install artificial lift in our Pincher Creek light oil well and to perform three to five well workovers on currently inactive wells in Acquisition 3. While the Company intends to spend the net proceeds from the Offering as stated above, there may be circumstances where, for sound business reasons, funds may be reallocated. If the Offering is not fully subscribed, the Company will apply the ...