this is interesting
I wonder why Stockhouse isn't posting the news releases about the increase in size and initial closing of the private placements? It's on sedar.com.
DONNYCREEK CLOSES FIRST TRANCHE OF PRIVATE PLACEMENT FINANCING
Calgary, Alberta, December 22, 2011 – Donnycreek Energy Inc. (“Donnycreek” or the “Company”)
(TSX.V: DCK) reports that it has successfully completed the first tranche of its previously announced nonbrokered
private placement of 4,236,040 common shares of the Corporation issued on a “flow-through”
basis within the meaning of the Income Tax Act (Canada) (“FT Shares”) at a price of
.85 per FT Share
and 1,314,078 non-flow-through common shares of the Corporation (“NFT Shares”) at a price of
.75
per NFT Share for aggregate gross proceeds of approximately $4.586 million (the “Offering”).
In connection with the first tranche of the Offering, the Company paid a finder’s fee to eligible persons
consisting of a cash payment in the aggregate amount of approximately $205,400 and the issuance of an
aggregate of 240,852 finder’s warrants (“Finder’s Warrants”). Each Finder’s Warrant entitles the holder
to acquire one NFT Share at an exercise price of
.85 for six months following the date of issuance.
The proceeds from FT Share subscriptions received to date will be used to incur eligible Canadian
Exploration Expenses (as defined in the Income Tax Act (Canada)) prior to December 31, 2012 and
which will be renounced to subscribers effective on or before December 31, 2011.
The FT Shares, NFT Shares and Finder’s Warrants are subject to a hold period under applicable
securities laws until April 23, 2012.
Kakwa Area, Alberta
A portion of the proceeds raised from the private placement will be deployed on Donnycreek’s 16 section
(4,140 ha/10,240 acres) land block located in the liquids-rich Kakwa Montney gas trend.
Donnycreek Energy is an emerging Canadian oil and natural gas production company focused on
horizontal, multi-stage frac development in the Deep Basin area of west central Alberta. The
Company holds working interests in 28 gross sections (7,250 ha/17,920 acres); 20 net sections
(5,180 ha/12,800 acres) prospective for Montney, Bluesky, Wilrich and Falher liquid rich resource
development providing a potential current drilling inventory of in excess of 80 gross locations.
ON BEHALF OF THE BOARD OF
DONNYCREEK ENERGY INC.
Malcolm Todd
President and Chief Executive Officer
For further information, please contact Malcolm