/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION
IN THE UNITED STATES/
CALGARY, AB and LONDON, UK, Oct. 25 /CNW/ - Solana Resources Limited (TSX-V: SOR; AIM: SORL) is pleased to announce that further to its news release issued earlier today, the size of the bought deal financing has been increased from 19,800,000 common shares to 24,330,000 common shares at a price of C$2.20 per common share for gross proceeds of C$53,526,000. The financing is being led by Tristone Capital Inc. and includes Orion Securities Inc., Westwind Partners Inc., and Toll Cross Securities Inc., collectively (the "Underwriters"). In addition, the Company has granted the Underwriters an over-allotment option to acquire up to an additional 2,970,000 common shares at a price of C$2.20 per common share at any time within 30 days of the closing date. If the over-allotment option is exercised in full, additional gross proceeds will be C$6,534,000 for total gross proceeds of C$60,060,000. The offering will be made in the provinces of British Columbia, Alberta, and Ontario by way of short form prospectus. The offering is scheduled to close on or about November 14, 2007.
Solana plans to use the net proceeds of this offering to fund exploration and development of its Colombian oil and gas assets and for general corporate purposes.
This news release shall not constitute an offer to sell or the solicitation of any offer to buy the securities in any jurisdiction. The common shares may be offered or sold in other eligible foreign jurisdictions and to U.S. buyers on a private placement basis pursuant to an applicable exemption from registration requirements in Rule 144-A or Regulation D of the United States Securities Act of 1933, as amended.
Forward Looking Statements
Certain information regarding the Company, including management's assessment of future plans and operations, may constitute forward-looking statements under applicable securities law and necessarily involve risks associated with oil and gas exploration, production, marketing and transportation such as loss of market, volatility of prices, currency fluctuations, imprecision of reserve estimates, mechanical problems, equipment limitations, environmental risks, competition from other producers and ability to access sufficient capital from internal and external sources; as a consequence, actual results may differ materially from those anticipated.
Solana Resources Limited
Solana (www.solanaresources.com) is an international resource company engaged in the acquisition, exploration, development and production of oil and natural gas. The Company's properties are located in Colombia, South America and are held through its wholly owned subsidiary, Solana Petroleum Exploration (Colombia) Limited. The Company is headquartered in Calgary, Alberta, Canada.
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