Toronto, Ontario - Stans Energy Corp. (HRE:CA) (HREEF) , ("Stans" or the "Company") is pleased to announce that it has completed a closing of its previously announced non-brokered private placements (the “Placements”).
Stans offered to issue up to $2,000,000 of units (26,666,667 units at a price of $0.075 per unit). Each Unit consisted of one common share in the capital of the Company and one share purchase warrant (each whole warrant a “Warrant”). Each Warrant is exercisable to acquire one additional common share of the Company for a period of 24 months from date of issue at a price of $0.10 per common share.
334,800 common shares for gross proceeds of $25,110 were issued in this placement. No finders fees were paid. Pursuant to Canadian Securities laws, the securities issuable under this Private Placement are subject to a hold period which expires on July 24, 2015.
Stans then offered to issue up to $500,000 of units (10,000,000 units at a price of $0.05 per unit). Each unit consisted of one common share in the capital of the Company and one share purchase warrant (each whole warrant a “Warrant”). Each Warrant is exercisable to acquire one additional common share of the Company for a period of 24 months from date of issue at a price of $0.065 per common share.
9,419,800 common shares for gross proceeds of $485,100 were issued in this placement. Finders fees were paid totalling $11,000 in cash and 215,000 finders warrants, with each Finders’ Warrant being exercisable to acquire one common share of the Company for a period of 24 months from date of issue at a price of $0.065 per common share. Pursuant to Canadian Securities laws, the securities issuable under this Private Placement are subject to a hold period which expires on August 11, 2015.
Combined Insider participation in both Placements totaled $223,600.00. Stans intends to use the gross proceeds from the Offering is to fund the legal and general overhead costs associated with the Company’s collection of US$118 million from the Kyrgyz Government and general corporate purposes.
Furthermore the Company reports that COO, Boris Aryev, has been issued 425,000 to settle debts of $21,619.61 owed by the Company to him for salary compensation.
“We are very pleased to secure this working capital in timely manner. This provides Stans the opportunity to continue negotiations with various funding partners to secure the long term working capital required to fund operations while pursuing the successful recognition of our US$118 million International Arbitration Award.
Due to interest received from various groups, it has been decided to seek to raise an additional CAD$100,000 in a new financing to better allow the Company to negotiate long term financing on favourable terms,” states Rodney Irwin, Interim President and CEO.
The Proposed Offering of Common Shares
The proposed new non-brokered private placement offering is for an amount of up to $100,000 (the “Offering Amount”) consisting of up to 2,000,000 units to be issued at a price of $0.05 per Unit. Each Unit will consist of one common share in the capital of the Company and one-half of one share purchase warrant (each whole warrant a “Warrant”). Each Warrant will be exercisable to acquire one additional common share of the Company for a period of 24 months at a price of $0.065 per common share. This new offering
The expiry date of the Warrants may be accelerated by the Company in the event that (the “Acceleration Event”) the closing price of the common shares of the Company on the TSX Venture Exchange, or such other exchange on which the Common Shares may primarily trade from time to time, at a volume-weighted average price of $0.15 for a period of least 20 consecutive trading days at any time after July 15, 2015. If the Acceleration Event occurs the Company may, at its option, accelerate the expiry date of the Warrants by giving notice to the holders thereof and in such case the Warrants will expire at 4 p.m. (Toronto time) on the date which is the earlier of: (i) the 30th day after the date on which such notice is given by the Company in accordance with the terms of the Warrants; and (ii) the actual expiry date of the Warrants.
Stans intends to use the gross proceeds from the Offering is to fund the legal costs associated with the Company’s collection of US$118 million from the Kyrgyz Government and general corporate purposes.
The Company may pay registrants a cash commission of 5% of the gross proceeds of this Offering in respect of investors solicited or introduced by such registrants. Registrants will also be entitled to receive warrants to purchase that number of common shares of the Company as equals 5% of the total offering subscribed by investors solicited or introduced by such registrants, at an exercise price of $0.065 per share, for a term of 24 months.
This press release is not an offer of securities for sale in the United States. The securities have not been and will not be registered under the US Securities Act of 1933, as amended (the US Securities Act”), and may not be offered or sold in the United States or to US persons (as defined in Regulation S under the US Securities Act) absent registration or an applicable exemption form.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Closing of the Offering will be subject to certain closing conditions, including the approval of the Toronto Stock Exchange.
About Stans Energy
Stans Energy Corp. is a resource development company focused on advancing Heavy Rare Earth (HRE) properties in areas of Central Asia and Russia. In December 2009, Stans acquired a 20-year mining license for the past-producing Kutessay II rare earth mine from the Kyrgyz Republic. On May 26, 2011 Stans completed the purchase of the Kashka Rare Earth Processing Plant (KRP) the same plant that previously refined REEs from Kutessay II ores. The KRP was the only hard rock plant to produce all rare earth elements outside of China, producing 120 different metals, alloys, and oxides. For over 30 years, Kutessay II produced 80% of the rare earth metals for the Former Soviet Union.
We seek safe harbour.
Stans Energy Corp
Interim President & CEO
Stan Energy Corp
VP Corporate Development
FORWARD LOOKING STATEMENTS: This document includes forward-looking statements as well as historical information. Forward-looking statements include, but are not limited to, use of proceeds from the Offering, the completion of the Offering, the continued advancement of the company's general business development, research development and the company's development of mineral exploration projects. When used in this press release, the words “will”, “shall”, "anticipate", "believe", "estimate", "expect", "intent", "may", "project", "plan", "should" and similar expressions may identify forward-looking statements. Although Stans Energy Corp. believes that their expectations reflected in these forward looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statement. Important factors that could cause actual results to differ from these forward-looking statements include the potential that fluctuations in the marketplace for the sale of minerals, the inability to implement corporate strategies, the ability to obtain financing and other risks disclosed in our filings made with Canadian Securities Regulators.
DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer