OilVoice - Vast Exploration Raises $15 Million to Fund Exploration Program in Iraq

Vast Exploration Raises $15 Million to Fund Exploration Program in Iraq

Thursday, September 17, 2009

Vast Exploration Inc. has entered into an agreement with a syndicate of underwriters co-led by Canaccord Capital Inc. and GMP Securities L.P. and including Genuity Capital Markets, Haywood Securities Inc. and Wellington West (collectively the "Underwriters") which have agreed to purchase, on a bought deal basis, 20,000,000 special warrants of Vast at a price of $0.75 per special warrant, for aggregate gross proceeds of $15,000,000.

In addition, the Underwriters have been granted an over-allotment option, which may be exercised until closing of the offering (the "Closing"), to purchase up to 13,400,000 additional special warrants at a price of $0.75 per special warrant. If the over-allotment is fully exercised, gross proceeds from the offering will be approximately $25,000,000.

Vast intends to use the net proceeds from the Offering to further fund its commitments and exploration program on the Qara Dagh block and for general corporate purposes. The Underwriters are entitled to receive a cash commission equal to 6% of the gross proceeds raised from the Offering and will be issued compensation options that will entitle them to acquire that number of Vast common shares that is equal to 6% of the special warrants sold under the Offering for a period of 12 months from the closing date.

The offering is scheduled to close on or about October 8, 2009 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange and the securities regulatory authorities.