CALGARY,
July 25, 2014 /CNW/ - Sterling
Resources Ltd. (TSX-V: SLG) ("Sterling" or the "Company") is
pleased to announce the closing of the private placement of
71,579,746 new common shares in the capital of the Company (the
"Common Shares") to certain existing shareholders at C$0.482 per Common Share to raise approximately
US$32 million (the
"Placement"). The Common Shares were issued pursuant to
applicable exemptions from prospectus requirements and have a hold
period expiring on November 26, 2014
pursuant to applicable securities laws. No commission fees
were payable on the Placement.
The subscribers to the Placement, together with
the value of shares subscribed for and the total resultant
shareholdings upon completion of the Placement where known, are
Waterford Finance & Investment Limited (US$20 million, 16.90 percent), Meridian Capital
International Fund (US$3.57 million,
9.99 percent), YF Finance Limited (US$3.57
million, 9.99 percent) and other placees ($5 million).
The proceeds of the Placement are intended to be
used towards costs arising in the second half of 2014, including
Breagh development capital expenditures (principally the drilling
of development well A08), the UK Crosgan appraisal well, interest
and amortization payments under the Company's US$225 million senior secured bond, further gas
price hedging and other corporate costs. With this funding,
the Company expects to be fully financed until late in 2014.
Several of the Company's existing large shareholders have indicated
a strong desire to support the Company with additional funding if
required, but the Company will continue to explore further funding
options, including the debt capital markets, which would minimize
further dilution of net asset value to shareholders.
Sterling is a Canadian-listed international oil
and gas company headquartered in Calgary,
Alberta with assets in the United
Kingdom, Romania,
France and the Netherlands. The Common Shares are listed
and posted for trading on the TSX-V under the symbol "SLG".
Neither the TSX-V nor its Regulation Services
Provider (as that term is defined in the policies of the TSX-V)
accepts responsibility for the adequacy or accuracy of this
release.
Filer Profile No.
00002072
Forward-Looking Statements
All statements included in this news release that
address activities, events or developments that Sterling expects,
believes or anticipates will or may occur in the future are
forward-looking statements. In addition, statements relating
to expected production, reserves or resources are deemed to be
forward-looking statements as they involve the implied assessment,
based on certain estimates and assumptions that the reserves and
resources described can be profitably produced in the future.
In particular, this document contains forward-looking statements
regarding the use of proceeds of the Placement, expectations for
the Company's financial needs, the support of the Company's
existing shareholders and the potential to access the debt capital
markets.
These forward-looking statements involve numerous
assumptions made by Sterling based on its experience, perception of
historical trends, current conditions, expected future developments
and other factors it believes are appropriate in the
circumstances. In addition, these statements involve
substantial known and unknown risks and uncertainties that
contribute to the possibility that the predictions, forecasts,
projections and other-forward looking statements will prove
inaccurate, certain of which are beyond Sterling's control,
including: the impact of general economic conditions in the areas
in which Sterling operates, civil unrest, industry conditions,
changes in laws and regulations including the adoption of new
environmental laws and regulations and changes in how they are
interpreted and enforced, increased competition, the lack of
availability of qualified personnel or management, fluctuations in
commodity prices, foreign exchange or interest rates, stock market
volatility and obtaining required approvals of regulatory
authorities. In addition there are risks and uncertainties
associated with oil and gas operations. Readers should also
carefully consider the matters discussed under the heading "Risk
Factors" in the Company's Annual Information Form.
Undue reliance should not be placed on these
forward-looking statements, as there can be no assurance that the
plans, intentions or expectations upon which they are based will
occur. Sterling's actual results, performance or achievements
could differ materially from those expressed in, or implied by,
these forward-looking statements. These statements speak only
as of the date of the news release. Sterling does not intend and
does not assume any obligation to update these forward-looking
statements except as required by law.
Financial outlook information contained in this
news release about prospective results of operations, financial
position or cash flows is based on assumptions about future events,
including economic conditions and proposed courses of action, based
on management's assessment of the relevant information currently
available. Readers are cautioned that such financial outlook
information contained in this news release should not be used for
purposes other than for which it is disclosed herein.
SOURCE Sterling Resources Ltd.