Business
Sprott Resource Corp Announces $100 million Equity Financing By Subsidiary Orion Oil & Gas Ltd.
Sprott Resource Corp Announces $100 million Equity Financing By Subsidiary Orion Oil & Gas Ltd.
About this update from Winchester Equity Corporation
[{"type":"text","content":"\n\n\n\nOct. 15, 2009 (Canada NewsWire Group) -- TORONTO, Oct. 15 /CNW/ -- Sprott Resource Corp. (TSX: SCP) - Sprott Resource Corp. (\"SRC\") is pleased to announce that its wholly-owned subsidiary Orion Oil & Gas Ltd. (formerly 1491542 Alberta Ltd.) (\"Orion\" or the \"Company\") has entered into an equity financing agreement, on a best efforts agency basis, with a syndicate of agents co-led by Cormark Securities Inc., FirstEnergy Capital Corp. and TD Securities Inc. (collectively, the \"Agents\"). Pursuant to the agreement, Orion has agreed to raise $100,000,000 (the \"Offering\") from the sale of subscription receipts (\"Subscription Receipt\") at a price of $5.00 per Subscription Receipt.On October 13, 2009, SRC announced an agreement between Orion and Wintraysan Capital Corp. (TSX Venture: WTS.P) (\"Wintraysan\") whereby Wintraysan, pursuant to a plan of arrangement or other similar form of transaction (the \"Arrangement\"), will acquire all of the currently issued and outstanding securities, including common shares, of Orion (\"Orion Shares\") in a reverse take-over transaction at an exchange ratio of three (3) Wintraysan common shares (\"Wintraysan Shares\") for every one (1) Orion Share outstanding. It is anticipated that in conjunction with the Arrangement and Offering, Wintraysan will effect a consolidation (the \"Consolidation\") of the Wintraysan Shares on the basis of one (1) new Wintraysan Share for each fifteen (15) existing Wintraysan Shares.In addition, it is intended that Wintraysan will change its name to \"Orion Oil & Gas Corporation\" or such other name (\"New Orion\") as may be approved by the board of directors of Wintraysan (the \"Name Change\"). In accordance with applicable laws, the Consolidation and the Name Change are subject to the approval of the shareholders of Wintraysan.Each Subscription Receipt will be exchanged for one (1) common share of New Orion (\"New Orion Share\"), post completion of the Arrangement and Consolidation, without additional payment upon satisfaction of certain conditions. The proceeds of the Offering will be held in escrow pending Orion's and Wintraysan's receipt of all necessary regulatory approvals, the completion of the Arrangement, and approval of the New Orion Shares on a recognized stock exchange acceptable to the Agents. Upon these conditions being met, the proceeds o...