CALGARY, Feb. 6 /CNW/ - Avery Resources Inc. (TSX-V:ARY) ("Avery" or the
"Corporation") announces that it intends to conduct an offering of up to
10,000,000 common shares of the Corporation ("Common Shares") at a price of
$0.40 per share for gross proceeds of up to $4 million to fund the exploration
and development of properties in the Cooper Basin, Australia as well as to
retire indebtedness and contribute to working capital. It is proposed that
5,000,000 Common Shares will be issued pursuant to a TSX Venture Exchange
("TSXV") Short Form Offering Document (the "Short Form Offering") and an
additional 5,000,000 Common Shares will be issued pursuant to a concurrent
private placement (the "Concurrent Private Placement") with an over allotment
option of up to 750,000 common shares. The Short Form Offering and Concurrent
Private Placement are subject to the approval of the TSXV.
Avery has engaged Canaccord Capital Corporation ("Canaccord") to act as
its agent on a commercially reasonable efforts basis in conducting the Short
Form Offering and Concurrent Private Placement. Canaccord will be paid a cash
commission on closing equal to 8% of the gross proceeds received by Avery from
the sale of Common Shares. Sequoia Oil and Gas Trust ("Sequoia"), who holds
approximately 44% of the Avery common shares will subscribe for the number of
Private Placement shares required to maintain its interest and no commission
will be paid on the sale of these shares. Canaccord will also receive an
option to purchase up to 8% of the Common Shares sold except for those shares
acquired by Sequoia. This option is exercisable at $0.40 per share for a
period of twelve months after the closing. Canaccord will also receive a
corporate finance fee and an administration fee.
Avery Resources Inc. is an international junior oil and gas exploration
company based in Calgary, Alberta that trades on the TSX Venture Exchange. The
company is committed to growing shareholder value through international
acquisitions and exploration. Avery's primary interest is in expanding
exploration projects in oil and gas basins located in countries that provide
significant exploration upside coupled with favourable fiscal and legal
systems.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
Forward looking statements: Except for statements of historical fact, all
statements in this press release, without limitation, regarding new projects,
acquisitions, future plans and objectives are forward-looking statements which
involve risks and uncertainties. There can be no assurance that such
statements will prove to be accurate; actual results and future events could
differ materially from those anticipated in such statements.
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