CALGARY, Feb. 24 /CNW/ - Avery Resources Inc. (the "Corporation") is
pleased to announce that it has completed its brokered private placement (the
"Private Placement") and short form offering document financing (the "SFOD
Financing"). Canaccord Capital Corporation acted as agent for both financings
and the Corporation issued an aggregate of 5,000,000 common shares at
$0.40 per share pursuant to the SFOD Financing and 5,750,000 common shares at
$0.40 per share pursuant to the Private Placement raising gross proceeds of
$4,300,000. The Private Placement was for 5,000,000 common shares with an over
allotment option for an additional 750,000 common shares. The Private
Placement including the over allotment was fully subscribed. As previously
announced, Sequoia Oil & Gas Ltd., an existing shareholder of the Corporation,
subscribed for $1,800,000 in the Private Placement, which is the amount
required to maintain its equity interest in the Corporation. No commission was
paid by the Corporation for that subscription from Sequoia Oil & Gas Ltd.
In addition to an 8 percent cash commission on certain of the proceeds,
the Corporation issued to the Agent, 75,000 common shares as a corporate
finance fee and common share purchase broker warrants, entitling the holder
thereof to acquire an aggregate 500,000 common shares at an exercise price of
$0.40 per share until February 24, 2007.
The common shares issued pursuant to the Private Placement and
100,000 common shares issued pursuant to the SFOD Financing are subject to a
four month hold which expires on June 25, 2006.
Avery Resources is an international junior oil and gas exploration
company based in Calgary, Alberta that trades on the TSX Venture Exchange. The
Corporation is committed to growing shareholder value through international
acquisitions and exploration. The Corporation's primary interest is in
Australia, where the Corporation is building a significant presence through
partnerships, drilling and acquisitions.
The TSX Venture Exchange 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.
%SEDAR: 00003559E
