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CALGARY, June 29, 2016 /CNW/ - Toro Oil & Gas Ltd.
(TSXV: TOO) ("Toro" or the "Company") is pleased to announce the closing of its previously announced $11.3
million bought deal financing pursuant to a short-form prospectus ("Public Offering") including the partial exercise of the
over-allotment option for total gross proceeds of approximately $12.6 million. The Public
Offering was led by AltaCorp Capital Inc., and included GMP Securities L.P., Macquarie Capital Markets Canada Ltd., National Bank
Financial Inc., FirstEnergy Capital Corp. and PI Financial Corp. (collectively, the "Underwriters"). In total, 54,820,400
units ("Units") were sold pursuant to the Public Offering at a price of $0.23 per Unit. Each
Unit consists of one common share ("Common Share") and one-half of one transferable common share purchase warrant ("Warrant") of
the Company. Each whole Warrant will entitle the holder thereof to acquire one Common Share for a period of three years following
the closing of the Offering at an exercise price of $0.40 per Common Share.
As mentioned, a portion of the Underwriters' over-allotment option was exercised concurrent with closing of the Public Offering
with the remaining units subject to the over-allotment option exercisable in whole or in part at any time up to 30 days from the
closing of the Public Offering.
The net proceeds from the Public Offering will be used to expand the Company's capital budget, for debt reduction and for
general corporate purposes. Toro anticipates returning to drilling operations in the second half of 2016 with a sustained
commodity price recovery. Until such time, Toro will continue to preserve capital and perform routine field operations
maintenance. Consequently, Toro will provide revised 2016 corporate guidance in the near future.
The Company has received conditional approval from the TSX Venture Exchange ("TSXV") to list the Common Shares under the symbol
TOO as well as the Warrants under the symbol TOO.WT pursuant to the Public Offering. Such listing will be subject to Toro
fulfilling all of the listing requirements of the TSXV.
The Common Shares and Warrants underlying the Units have not been and will not be registered under the U.S. Securities Act of
1933, as amended, and may not be offered or sold in the United States absent registration or
applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of the Units in any jurisdiction in which such offer, solicitation or
sale would be unlawful.
About Toro Oil & Gas Ltd.
Toro is a junior oil and gas energy company listed on the TSXV. Toro is focused on acquiring, developing and exploiting large
oil in place pools within the Alberta-Saskatchewan Viking light oil fairway. Toro intends to grow by way of organic development and
strategic acquisitions while maintaining strict financial discipline to maximize shareholder return.
Forward-Looking Information
The reader is advised that some of the information contained herein may constitute forward-looking information within the
meaning of National Instrument 51-102 and other relevant securities legislation. Forward-looking information contained herein
includes, but is not limited to, statements with respect to completion and timing of the Public Offering, the ability of Toro to
take advantage of increasing commodity prices to recommence drilling operations, Toro's capital plan the absence of a sustained
commodity prices increase, and the listing of the Common Shares and the Warrants issued pursuant to the Public Offering on the
TSXV. Such forward-looking statements are based on a number of assumptions, including the timely receipt of all required regulatory
approvals for the Public Offering.
Actual results may vary from forward-looking information and readers are cautioned not to place undue reliance on
forward-looking information. The Company does not undertake any obligation to release publicly any revisions to forward-looking
information contained herein to reflect events or circumstances that occur after the date hereof or to reflect the occurrence of
unanticipated events, except as may be required under applicable securities laws.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX
VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
SOURCE Toro Oil & Gas Ltd
