NewsStealth Ventures Ltd. Completes $15.5 Million Financing
12:41 EDT Tuesday, September 26, 2006
Trading Symbol: SLV. tsxventure
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THE UNITED STATES./
CALGARY, Sept. 26 /CNW/ - Stealth Ventures Ltd. ("the Company") is pleased to announce that it has closed the brokered portion of the private placement announced on August 31, 2006, and the increased non-brokered portion announced on September 21, 2006.
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Firstly: D & D Securities Company, of Toronto, Ontario, as Agent,
brokered a private placement totaling $7.14 million, which
consisted of two components, as follows:
(a) 1,337,500 units at a price of $1.60 per unit, each unit
consisting of one common share and one-half (1/2) of a
transferable share purchase warrant, with each whole warrant to
entitle the holder to purchase one additional common share at a
price of $2.30 until March 22, 2008, provided that, if after
the expiry of all applicable resale restrictions, the closing
price of the Company's shares on the TSX Venture Exchange is
$3.75 or greater for a period of 20 consecutive days, the
Company may give notice of an earlier expiry of the warrants,
in which case they will expire 21 days after the giving of such
notice.
(b) 2,941,176 Flow-Through shares at a price of $1.70 per share
D & D Securities Company also received 256,721 broker's
warrants, each of which entitles the holder to purchase one
unit having the same terms as disclosed above, at a price of
$1.60 until March 22, 2008, subject to the same potential
earlier expiry as disclosed above in respect of the share
purchase warrants forming a part of the units.
Secondly: The Company has also closed the $1.0 million increase in the
non-brokered portion of the private placement consisting of
625,000 units at a price of $1.60 per unit, each unit
consisting of one common share and one-half (1/2) of a
transferable share purchase warrant, with each whole warrant to
entitle the holder to purchase one additional common share at a
price of $2.30 until March 26, 2008. The Company will also
issue 37,500 finders' warrants in connection with this private
placement, each of which entitles the holder to purchase one
common share of the Company at a price of $1.60 until March 26,
2008, subject to the same potential earlier expiry as disclosed
above. The finder's warrants and recipient, Evergreen Capital
Corporation, of Geneva, Switzerland, were included in the
totals announced on September 21, 2006.
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All securities issued pursuant to the closing of the brokered private placement, including any securities issued in payment of commissions or finders' fees, will be subject to a hold period in Canada until January 23, 2007. All securities issued pursuant to the closing of the $1 million increase in the non-brokered portion of the private placement, including any securities issued in payment of commissions or finders' fees, will be subject to a hold period in Canada until January 27, 2007.
Total gross proceeds from the private placements announced on August 31, 2006, as amended by the announcement on September 21, 2006, were $15.5 million.
The proceeds from these private placements will be used to fund ongoing exploration and development activities at Stealth's CBM properties in Nova Scotia and at its Shale Gas properties in Saskatchewan and Alberta, as well as for general corporate purposes.
Stealth is a Calgary-based junior oil and gas company whose expertise and focus is on "unconventional" gas reserves like CBM, shale gas and tight gas sand reservoirs.
STEALTH VENTURES LTD.
"W. Robert Bell"
Per:
W. ROBERT BELL
President