Excelsior Energy Limited has commenced an overnight marketed public offering where the Corporation intends to raise up to $20 million through the combination of flow-through common shares (the “FT Common Shares”) at a price of $0.34 per FT Common Share and common shares (the “Common Shares”) at a price of $0.29 per Common Share. In addition to the gross proceed of $20 million, the Corporation has granted the Agents an option, to purchase an additional 15% of the number of Common Shares offered and 15% of the number of FT Common Shares offered, on the same terms and conditions as the Offering, exercisable in whole or in part at any time prior to the date that is 24 hours prior to closing of the Offering. In the event that the entire option is exercised, the proceeds would increase by $3.0 million for total gross proceeds up to $23.0 million.
The proceeds from this Offering will be used to further delineate Excelsior’s existing land base in Hangingstone and West Surmont, exploration and development activities, and for general working capital purposes.
The Offering will be completed by way of private placement and will be subject to the statutory hold period of 4 months from the time of closing of the Offering. Closing of the Offering is subject to customary terms and conditions, including receipt of required TSX Venture Exchange approval, and is expected to occur on or about September 3, 2008. The Offering will be marketed through a syndicate of investment dealers lead by Raymond James Ltd. and includes Macquarie Capital Markets Canada Ltd., and National Bank Financial.
