VANCOUVER, British Columbia, Feb. 28 /PRNewswire-FirstCall/ -- AMG Oil Ltd. ("AMG" or the "Company"), (BULLETIN BOARD: AMGO) , announces that it has completed the financing of 6,000,000 units (each a "Unit"), inclusive of an additional allotment of 1,000,000 Units that was previously announced on February 8, 2006, at a price of US$0.25 per Unit for gross proceeds of $1.5 Million. Each Unit consists of one share of common stock (a "Unit Share") and one share purchase warrant (a "Warrant"), and each Warrant entitles the holder thereof to acquire an additional share of common stock (a "Warrant Share") at a price of US$0.50 for a period of 24 months (subject to reduction in certain cases).
These securities have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. As a term of the offering, the Company has undertaken to register the Unit Shares and the Warrant Shares under the Securities Act.
The Unit Shares and any Warrant Shares issued upon exercise of the Warrants will be subject to a four-month hold period in Canada which expires on June 28, 2006. The net proceeds of the financing will be used for working capital and to enhance the Company's ability to acquire a suitable interest in a resource based asset.
AMG Oil Ltd. currently has 22,600,000 shares issued and outstanding.
For further information please contact:
AMG Oil Ltd.
Telephone: (604) 682-6496
Forward oriented information disclosure:
This press release includes certain statements that may be deemed "forward-looking statements". All statements in this press release, other than statements of historical facts, including those that announce proposed financings that the Company expects to complete, are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include the failure of investors who are believed to have committed to the financings to complete them as a result of general market conditions, adverse developments unique to such investors, or otherwise. Accordingly, the actual amounts raised may differ materially from those projected in the forward-looking statements. For more information on the Company, investors should review the Company's filings, available at http://www.sedar.com/ and http://www.sec.gov/. This announcement does not constitute an offering of securities nor a solicitation to purchase securities.
First Call Analyst:
FCMN Contact: danb@iremco.com
