Excelsior Energy Limited announces that further to its press releases dated November 20, 2007 it has now closed the first tranche of its private placement financing raising aggregate gross proceeds of $7,217,600. The first tranche consisted of 11,104,000 common shares issued on a "flow-through" basis ("Flow-Through Shares") at a price of $0.65 per Flow-Through Share. As previously disclosed Excelsior had increased the private placement by an additional 2,819,200 common shares (on a non flow-through basis) at a price of $0.52 per common share. Excelsior expects to close this additional portion of the private placement on or about the first week of January 2008. The Flow-Through Shares issued in the private placement are subject to a hold period of 4 months and one day expiring April 13, 2008.
Proceeds of the first tranche will be used to fund Excelsior's ongoing exploration and development activities at the Corporation's West Surmont property located in northern Alberta.
"With the closing of this flow-through financing our drilling programs at Hangingstone and West Surmont are fully funded with working capital of over $16 million" commented Dr. David Winter Excelsior’s CEO and President, "we have started our operations at Hangingstone and look forward to receiving early drilling results."
The private placement was conducted by a syndicate of investment dealers, led by Canaccord Capital Corporation and including Macquarie Capital Markets Canada Ltd. (formerly Orion Securities Inc.) and Blackmont Capital Inc. (collectively, the "Agents"). The Corporation paid the Agents a cash commission of 6% (3% in the case of subscribers on the President's list) and issued to the agents an aggregate of 656,190 broker warrants. Each broker warrant entitles the holder to acquire one common share in the capital of the Corporation at a price of $0.75 per common share at any time prior to 5:00 p.m. (Mountain Standard Time) on December 12, 2008.
