ST. HELIER, JERSEY, Sept. 10, 2014
/CNW/ - EastSiberian Plc (TSX NEX: ESB.H) ("EastSiberian" or
the "Corporation"), a Jersey company, is pleased to announce
that it has determined to increase the non-brokered private
placement previously announced on June
30, 2014. The private placement now consists of the
issuance of up to 30,000,000 common shares (the "Common
Shares") of the Corporation at a price of $0.05 per share for aggregate gross proceeds of
up to $1,500,000 (the "Private
Placement").
The Common Shares from the Private Placement will be issued on a
private placement basis pursuant to exemptions from applicable
Canadian, U.S. and international securities laws and will be
subject to a four-month and one day hold period from the closing
date of the Private Placement.
The Corporation intends to use the net proceeds from the Private
Placement to fund a third party engineering report, legal and other
costs in respect of a possible acquisition of oil and gas
concessions in Latin America, and
for general corporate purposes.
The Private Placement is expected to close in tranches with an
expected outside date of October 31,
2014. Completion of the Private Placement is subject to
certain conditions, including approval of the NEX Board of the TSX
Venture Exchange (the "NEX") to the listing of the Common
Shares on the NEX and to minimum gross proceeds from the Private
Placement of $500,000.
The Corporation also announces that it has entered into shares
for debt settlement agreements with current and former directors
and officers of the Corporation and consultants to the Corporation,
to settle outstanding obligations owing by the Corporation.
The NEX has conditionally approved the issuance of an aggregate
8,914,320 Common Shares (the "Debt Shares") at a issue price
of $0.05 per share to settle an
aggregate $445,716, which represents
a portion of outstanding amounts owing to such directors, officers
and consultants. Further settlement by the Corporation of
outstanding obligations through the issuance of Common Shares
requires the approval of the shareholders of the Corporation.
The Corporation intends to seek such approval at the next annual
meeting of shareholders. The Corporation has determined to
settle its obligations with directors, officers and consultants and
to issue Debt Shares to help improve the financial position of the
Corporation and to enable the Corporation to use the net proceeds
from the Private Placement to facilitate the acquisition of the oil
and gas concessions referred to above.
The Debt Shares will be issued on a private placement basis
pursuant to exemptions from applicable Canadian securities laws and
will be subject to a four-month and one day hold period from the
date of issuance of the Debt Shares.
Given the opportunities available to the Corporation at this
time, the Corporation has determined to pursue these opportunities,
including negotiating the proposed acquisition of the concessions,
and not pursue the liquidation of the Corporation, as disclosed in
the interim financial statements of the Corporation for the nine
months ended February 28, 2014.
The Common Shares are currently halted from trading on the NEX
at the request of the Corporation to allow the Corporation to
complete the third party engineering report, to enable it to
provide disclosure of the proposed concession acquisition. If
an agreement in respect of such acquisition can be agreed
upon. The Common Shares will remain halted until further
notice in respect of such possible acquisition, if the Corporation
enters into an agreement in respect of any such acquisition.
The closing price of the Common Shares on June 30, 2014, the last trading day prior to the
trading halt, was $0.02/share.
About EastSiberian
EastSiberian is an international junior oil exploration company
incorporated in the Bailiwick of Jersey. For further information,
please visit the EastSiberian Plc website at
www.eastsiberianplc.com. The common shares of the Corporation
are currently listed on the NEX.
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.
Advisory Regarding Forward-Looking Statements
This press release contains certain forward-looking
statements and forward-looking information (collectively referred
to as "forward looking statements") within the meaning of Canadian
securities laws. All statements other than statements of historical
fact are forward-looking statements. Forward-looking information
typically contains statements with words such as "anticipate",
"believe", "plan", "estimate", "expect", "may", "will", "project",
"should" or similar words suggesting future outcomes. In
particular, this press release contains forward-looking statements
pertaining to: the Private Placement, including the timing of the
closing the Private Placement, the aggregate proceeds to be raised
and the use of the net proceeds; the issuance of the Debt Shares;
completion of an acquisition of an interest in properties in
Latin America; and business plans
and strategies.
Undue reliance should not be placed on forward-looking
statements, which are inherently uncertain, are based on
assumptions, and are subject to known and unknown risks and
uncertainties (both general and specific) that contribute to the
possibility that the future events or circumstances contemplated by
the forward-looking statements will not occur. There can be no
assurance that the plans, intentions or expectations upon which
forward-looking statements are based will in fact be realized.
Actual results may differ, and the difference may be material and
adverse to the Corporation and its shareholders. In
particular, no assurances can be given that the
Corporation will raise $1,500,000
pursuant to the Private Placement, negotiate any acquisition
opportunity in Latin America on
terms acceptable to the Corporation or complete any such
acquisition.
Forward-looking statements are based on the terms of the
letter of intent and the Corporation's current beliefs as well as
assumptions made by, and information currently available to, the
Corporation concerning business prospects, strategies,
characteristics of the properties subject to the possible
acquisition opportunity, regulatory developments, government
support, future commodity prices, the ability to market products
successfully and the ability to obtain financing on acceptable
terms. Although management considers these assumptions to be
reasonable based on information currently available to it, they may
prove to be incorrect. By their very nature, forward-looking
statements involve inherent risks and uncertainties, both general
and specific, and risks that forward-looking statements will not be
achieved.
The forward-looking statements contained in this press
release are made as of the date hereof and the Corporation does not
undertake any obligation to update publicly or to revise any of the
included forward-looking statements, except as required by
applicable law. The forward-looking statements contained herein are
expressly qualified by this cautionary statement.
SOURCE EastSiberian Plc