TAG to Transfer Stake in New Zealand Power Generator to Coronado Resources
VANCOUVER, May 15, 2013
VANCOUVER, May 15, 2013 /PRNewswire/ - TAG Oil Ltd. (TSX: TAO; OTCQX: TAOIF),
reports that it has agreed to sell its 90% stake in Opunake Hydro Limited
("OHL"), an established electricity generator and supplier in New Zealand, to
Coronado Resources Ltd. (TSX-V: CRD; OTCQX: CRDAF) in exchange for common
shares of Coronado valued at approximately CDN$5,000,000. The common shares of
Coronado being issued to TAG Oil and the vendor of the remaing 10% interest
represents full consideration paid by Coronado to acquire 100% of the issued
and outstanding shares of OHL.
OHL is an active power generation company based in New Zealand, and is poised
to rapidly expand its generation capabilities. Upon completion of this
transaction, OHL will have working capital of approximately CDN$8 million
allowing the company to acquire additional gas fired electricity generation
equipment, while securing natural gas supply through TAG. This will enable
both TAG and OHL to benefit from increased generation of electricity for sale
into thriving retail, industrial and commercial markets.
The transaction is being completed pursuant to the terms of a definitive share
purchase agreement dated May 13, 2013 between TAG Oil, Coronado and the vendor
of the remaining 10% interest in OHL. Under the terms of the share purchase
agreement, TAG will receive 13,015,410 common shares of Coronado valued at
CDN$0.39 per share. The Coronado share price is based on the volume weighted
average closing price of Coronado's common shares on the TSX Venture Exchange
("TSX-V") for the 20 consecutive trading days ending on May 10, 2013.
TAG currently holds 25,975,000 common shares, or 40.08%, of Coronado and upon
completion of the transaction, TAG will hold 38,990,410 common shares, or
49.18%. The common shares will be held for investment purposes and TAG may,
depending on market and other conditions, increase or decrease its beneficial
ownership of common shares or other securities of Coronado whether in the open
market, by privately negotiated agreement or otherwise. Completion of the
transaction is subject to a number of conditions, including approval of the
Transaction by Coronado shareholders, the TSX-V and under the New Zealand
Overseas Investment Act.
This press release is issued pursuant to National Instrument 62-103 - The
Early Warning System and Related Take-Over Bid and Insider Reporting Issues,
which also requires a report to be filed with regulatory authorities in each
of the jurisdictions containing additional information with respect to the
foregoing matters (the "Early Warning Report"). To obtain a copy of the Early
Warning Report filed in connection with the Transaction, please see Coronado's
profile on the SEDAR website at www.sedar.com.
TAG Oil Ltd.
TAG Oil Ltd. (http://www.tagoil.com/) is a Canadian-based production and
exploration company with operations focused exclusively in New Zealand. With
100% ownership over all its core assets, including extensive oil and gas
production infrastructure, TAG is enjoying substantial oil and gas production
and reserve growth through development of several light oil and gas
discoveries. TAG is also actively drilling high-impact exploration prospects
identified across more than 2,984,171 net acres of land in New Zealand.
In the East Coast Basin, TAG is exploring the major unconventional resource
potential believed to exist in the source-rock formations that are widespread
over the Company's acreage. These oil-rich and naturally fractured formations
have many similarities to North America's Bakken source-rock formation in the
successful Williston Basin.
Cautionary Note Regarding Forward-Looking Statements:
Statements contained in this news release that are not historical facts are
forward-looking statements that involve various risks and uncertainty
affecting the business of TAG. Such statements can generally, but not always,
be identified by words such as "expects", "plans", "anticipates", "intends",
"estimates", "forecasts", "schedules", "prepares", "potential" and similar
expressions, or that events or conditions "will", "would", "may", "could" or
Forward-looking statements and information concerning anticipated financial
performance are based on management's assumptions using information currently
available. Forward-looking statements in this news release include TAG's
expectations regarding the completion and anticipated results of the
Transaction. Completion of the Transaction is subject to the satisfaction of a
number of conditions which are beyond the control of TAG. There is no
assurance that such conditions will be satisfied. In such event the
Transaction may not complete. There may also be other factors that cause
results not to be as anticipated, estimated or intended. There can be no
assurance that such information will prove to be accurate, as actual results
and future events could differ materially from those anticipated in such
statements. Accordingly, readers should not place undue reliance on
TAG undertakes no obligation, except as otherwise required by law, to update
these forward-looking statements in the event that management's beliefs,
estimates or opinions, or other factors change.
SOURCE TAG Oil Ltd.
Dan Brown or Garth Johnson
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