BNP announces closing of equity financings
Release Date: October 16, 2007
CALGARY, Oct. 16, 2007 (Canada NewsWire via COMTEX News Network) —
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CALGARY, Oct. 16 /CNW/ – BNP Resources Inc. (“BNP”) is pleased to announce that it has successfully closed a previously announced private placement of 2,142,857 preferred shares (“Preferred Shares”) of a wholly-owned subsidiary of BNP at a price of $0.70 per share, for gross proceeds of approximately $1,500,000. Each Preferred Share is convertible into one Class A share of BNP, at the option of the subscriber, at any time prior to 36 months following the closing of the offering (the “Maturity Date”) and, in any event, will automatically convert on the Maturity Date.
BNP is also pleased to announce that it has successfully closed a second tranche of a previously announced private placement of Class A shares issued on a “flow-through” basis (“Flow-Through Shares”). A total of 119,600 Flow-Through Shares were issued at a price of $0.84 per share, for total gross proceeds of $100,464. As a result of closing the previously announced private placements of Flow-Through Shares for total gross proceeds of $927,444 and of Preferred Shares for total gross proceeds of approximately $1,500,000, BNP has raised approximately $2,400,000 through the issuance of equity, which amount exceeds the minimum it had undertaken to raise.
Acumen Capital Finance Partners Limited (“Acumen”) acted as the agent in respect of the private placement of Preferred Shares and Flow-Through Shares.
Proceeds from the offerings will be used to fund BNP’s ongoing exploration drilling program in its core focus areas. As part of its commitment to develop its business opportunities in Saskatchewan, BNP has acquired a one-section oil prospect in S.W. Saskatchewan, and has prepared for two wells in Southeast Saskatchewan, one of which has commenced drilling.
The Class A Shares issuable upon conversion of the Preferred Shares will be subject to a four month hold period from the date of closing of the private placement. The Flow-Through Shares will be subject to a four month hold period from the date of closing of the private placement.
BNP is actively engaged in the exploration for, the development and production of, natural gas and oil reserves. BNP’s business strategy is to build sustainable and profitable per share growth through selective acquisitions and internally generated exploration and development drilling.
BNP has approximately 9,604,100 Class A shares and 922,500 Class B shares issued and outstanding which trade on the TSX Venture Exchange under the symbols “BNX.A and “BNX.B”.
Further information with regards to BNP may be found on the SEDAR website www.sedar.com or on BNP’s website www.bnpresources.com.
ADVISORY: This press release may contain forward-looking statements including management’s assessment of future plans and operations and expectations of future production, cash flow and earnings. These statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated. These risks include, but are not limited to: the risks associated with the oil and gas industry (e.g. operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses and health, safety and environmental risks), commodity price and exchange rate fluctuation and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. The forward-looking statements contained in this press release are made as of the date hereof and BNP undertakes no obligations to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
SOURCE: BNP Resources Inc.
Gregory Bilcox, President and CEO, BNP Resources Inc., Phone: (403) 695-1091, Fax: (403) 265-0413; Gordon B. Paul, VP Finance and CFO, BNP Resources Inc., Phone: (403) 695-1095, Fax: (403) 265-0413
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