Sunshine Oilsands Announces Receipt of Equity Subscription Funds in Respect of
Revised Placement and Second Placements Held on Trust
CALGARY, Alberta and HONG KONG, June 8, 2014 /CNW/ - Reference is made to the
announcements of the Corporation dated May 19, 2014 (the "First Announcement")
and June 2, 2014 (the "Second Announcement", and together with the First
Announcement, the "Announcements"). Unless the context otherwise require,
terms used in this announcement shall have the same meanings as those defined
in the Announcements.
Sunshine Oilsands Ltd. ("Sunshine" or the "Corporation") (HKEX: 2012, TSX:
SUO) announces that, further to its Second Announcement in respect of the
Revised Placement and the Second Placements (as defined in the Second
Announcement), its counsel has received HK $544,000,000 (approximately CDN
$76.2 million) (the "Funds"), representing the aggregate subscription price in
respect of the Revised Placement and the Second Placements, in its trust
account from the six subscribers (being Immediate Focus, Big View, China Life,
City Legend, Crystal Touch and Yarui).
It is expected that the Funds will be held on trust pending the closing of the
Revised Placement and Second Placements, which will be conditional upon the
(i) the closing of the Proposed Debt Offering (as defined in the First
(ii) the Hong Kong Stock Exchange and the Toronto Stock Exchange approving
the listing of the Common Shares to be issued pursuant to the Second
(iii) compliance of the Revised Placement and Second Placements with the
requirements under the Hong Kong Listing Rules and the Hong Kong Code on
Takeovers and Mergers (where applicable); and
(iv) the receipt of all other required regulatory approvals.
After the fulfilment of conditions (ii), (iii) and (iv) above, completion of
the Revised Placement and Second Placements and release of the subscription
funds to the Corporation are expected to take place concurrently with the
closing of the Proposed Debt Offering. A further announcement will be made by
the Corporation upon completion of the Revised Placement and Second Placements.
The Corporation anticipates that the net proceeds to be raised from the
Revised Placement and Second Placements will be primarily used by the
Corporation to settle outstanding accounts payable with a view to resuming the
development and construction of the Corporation's West Ells steam assisted
gravity drainage ("SAGD") project and for general corporate purposes.
Completion of the Revised Placement and Second Placements is subject to the
satisfaction of the conditions referred to above. As the Revised Placement and
Second Placements may or may not proceed, Shareholders and potential investors
of the Corporation are advised to exercise caution when dealing in the
securities of the Corporation.
The Corporation intends to use the proceeds from the Proposed Debt Offering
to: (i) fund expenditures associated with the anticipated final construction
and development necessary to complete phases one and two at the Corporation's
West Ells SAGD project and general corporate purposes, (ii) prefund 18 months
of cash interest in an escrow account and (iii) pay fees and expenses
associated with the Proposed Debt Offering.
No binding agreement in relation to the Proposed Debt Offering has been
entered into as at the date of this announcement. The Proposed Debt Offering
may nor may not materialise subject to, among other things, market conditions
and investors' interest. Investors and shareholders of the Corporation are
reminded to exercise caution when dealing in the securities of the Corporation.
FORWARD-LOOKING INFORMATION AND DISCLAIMER
This announcement contains forward-looking information relating to, among
other things: (a) the future financial performance and objectives of Sunshine;
(b) the plans and expectations of the Corporation; (c) the ability of the
Corporation to complete the Proposed Debt Offering, the Revised Placement and
Second Placements; and (d) the use of any proceeds raised from the Proposed
Debt Offering, Revised Placement and Second Placements. Such forward-looking
information is subject to various risks, uncertainties and other factors. All
statements other than statements and information of historical fact are
forward-looking statements. The use of words such as "estimate", "forecast",
"expect", "project", "plan", "target", "vision", "goal", "outlook", "may",
"will", "should", "believe", "intend", "anticipate", "potential", and similar
expressions are intended to identify forward-looking statements.
Forward-looking statements are based on Sunshine's experience, current
beliefs, assumptions, information and perception of historical trends
available to Sunshine, and are subject to a variety of risks and uncertainties
including, but not limited to those associated with resource definition and
expected reserves and contingent and prospective resources estimates,
unanticipated costs and expenses, regulatory approval, fluctuating oil and gas
prices, expected future production, the ability to access sufficient capital
to finance future development and credit risks, changes in Alberta's
regulatory framework, including changes to regulatory approval process and
land-use designations, royalty, tax, environmental, greenhouse gas, carbon and
other laws or regulations and the impact thereof and the costs associated with
compliance. Although Sunshine believes that the expectations represented by
such forward-looking statements are reasonable, there can be no assurance that
such expectations will prove to be correct. Readers are cautioned that the
assumptions and factors discussed in this announcement are not exhaustive and
readers are not to place undue reliance on forward-looking statements as our
actual results may differ materially from those expressed or implied.
Sunshine disclaims any intention or obligation to update or revise any
forward-looking statements as a result of new information, future events or
otherwise, subsequent to the date of this announcement, except as required
under applicable securities legislation. The forward-looking statements speak
only as of the date of this announcement and are expressly qualified by these
cautionary statements. Readers are cautioned that the foregoing lists are not
exhaustive and are made as at the date hereof. For a full discussion of our
material risk factors, see "Risk Factors" in the Annual Information Form of
the Corporation for the year ended December 31, 2013 (the "AIF"), "Risk
Management" in our current MD&A for the year ended December 31, 2013 and risk
factors described in other documents we file from time to time with securities
regulatory authorities, all of which are available on the Hong Kong Stock
Exchange at www.hkexnews.hk, on the SEDAR website at www.sedar.com or our
website at www.sunshineoilsands.com.
In addition, information and statements in this announcement relating to
"reserves" and "resources" are deemed to be forward-looking information, as
they involve the implied assessment, based on certain estimates and
assumptions, that the reserves and resources described exist in the quantities
predicted or estimated, and that the reserves and resources described can be
profitably produced in the future. The assumptions relating to Sunshine's
reserves and resources are contained in the reports of GLJ Petroleum
Consultants Ltd. and DeGolyer and MacNaughton Canada Limited, each effective
as of December 31, 2013. For additional information regarding the specific
contingencies which prevent the classification of Sunshine's contingent
resources as reserves see "Statement of Reserves Data and Other Oil and Gas
information" in our most recent AIF. The estimates of reserves and future net
revenue for individual properties in this announcement may not reflect the
same confidence level as estimates of reserves and future net revenue for all
properties, due to the effects of aggregation. "Contingent Resources" has the
meaning given to that term in the AIF.
About Sunshine Oilsands Ltd.
The Corporation is a Calgary based public corporation, listed on the Hong Kong
Stock Exchange since March 1, 2012 and the Toronto Stock Exchange since
November 16, 2012. The Corporation is focused on the development of its
significant holdings of oil sands leases in the Athabasca oil sands region.
The Corporation owns interests in approximately one million acres of oil sands
and P&NG leases in the Athabasca region. The Corporation is currently focused
on executing milestone undertakings in the West Ells project area. West Ells
has an initial production target rate of 5,000 barrels per day, which will be
followed immediately by an approved expansion to a planned production capacity
of 10,000 barrels per day. In addition to West Ells activities, the
Corporation has received regulatory approval for the Thickwood 10,000 barrels
per day SAGD project and has an additional 10,000 barrels per day application
in regulatory review for Legend.
SOURCE Sunshine Oilsands Ltd.
Mr. David Sealock, Interim President & CEO, Tel: (1) 403 984 1446,
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-0- Jun/09/2014 02:37 GMT
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