Magnum Announces Closing First Tranche of Private Placement
June 13, 2014 (Source: Marketwired) — MAGNUM ENERGY INC. (“Magnum” or the “Corporation”) (TSX VENTURE:MEN) Magnum announces that the company has closed the first tranche of the arranged non-brokered private placement previously announced on May 28, 2014. Magnum has issued an aggregate of 5,000,000 units for gross proceeds of $250,000. Each unit consists of one common share of Magnum Energy Inc. and one non-transferable share purchase warrant. Each whole warrant will entitle the holder to acquire one common share at an exercise price of 10 cents for a period of 24 months from the closing date of the private placement. All of the securities issued pursuant to the private placement will be subject to a minimum four-month hold period. The private placement and payment of any finder’s fee are subject to acceptance by the TSX Venture Exchange.
The net proceeds of the private placement will be used principally to work over wells in Provost and Sedalia with production behind pipe. These work-overs are primarily maintenance work overs addressing mechanical issues that are cyclical in nature. These work-overs require no permitting and will begin within 7-10 days.
We seek Safe Harbor.
Neither 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.
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