Final Tranche 2013-04-03 14:19 ET - News Release
Mr. Barry Ehrl reports
DEREK ANNOUNCES CLOSING OF 2nd TRANCHE OF PRIVATE PLACEMENT UNDER TEMPORARY RELIEF PROGRAM
Derek Oil & Gas Corp. has received regulatory approval for the closing of the second and final tranche of the temporary relief private placement announced Jan. 24, 2013. This second tranche is in the amount of $223,493 including $63,493 which was taken up by two directors and an officer of the company.
The second tranche comprises 14,899,567 units at a price of 1.5 cents per unit. Each unit consists of one share and one share purchase warrant. Each warrant entitles the holder to purchase a further common share of the company at a price of five cents per share for the first 12 months from closing and at a price of 10 cents per share for a subsequent 48-month period. The shares issued pursuant to this placement, as well as any shares acquired through warrant conversion, will have a 120-day hold period from the date of closing.
Proceeds from the placement will be allocated as follows:
- Payments to a total of 17 arm's-length material and service providers to the LAK Ranch project of $80,000;
- Payments to royalty holders of $30,000;
- Payments for TSX Venture Exchange fees and outstanding audit and legal costs of $45,000;
- Payments for Vancouver expenses of $43,493;
- Total of $223,493.
None of the proceeds of the second tranche of the private placement will be used to pay related party costs.
The board of directors of Derek has, with the exception of the directors participating in the placement, approved this private placement.
The company also wished to report the settlement of fees of $50,000 by the issuance of 500,000 shares to an insider. By exchange policy this debt settlement will be for common shares only at a price of 10 cents per share. There is restriction on resale of these shares until July 16, 2013.