CALGARY, ALBERTA -- (Marketwired) -- 06/16/16 -- Veraz Petroleum Ltd. ("Veraz" or the "Company") (NEX: VRZ.H) is pleased to announce that it has closed the initial tranche of its previously announced non-brokered private placement (the "Private Placement") of units ("Units") of the Company. In this initial tranche, the Company has issued an aggregate of 2,440,000 Units to exempt buyers on a private placement basis at a price of $0.05 per Unit for aggregate gross proceeds of $122,000. The Company paid a cash finder's fee of $8,540 and issued 170,800 broker warrants ("Broker Warrants") related to subscriptions for 2,440,000 Units in the Private Placement.
Each Unit consists of one common share ("Common Share") of the Company and one half of one Common Share purchase warrant (a "Warrant") of the Company. Each whole Warrant and each whole Broker Warrant will entitle the holder to purchase one additional Common Share ("Warrant Share") at a price of $0.10 per Warrant Share for a period of 12 months from the date hereof.
The securities issued in this initial tranche of the Private Placement are subject to a four-month hold period under applicable securities laws, which hold period expires on October 17, 2016.
Proceeds from this initial tranche of Private Placement will be used by the Company for evaluation costs associated with various lithium properties in Nevada, as well as general working capital.
Veraz expects to close the final tranche of the Private Placement on or before June 24, 2016.
Advisory Regarding Forward-Looking Statements
Certain information provided in this news release may constitute forward-looking statements within the meaning of applicable securities laws. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties, including the anticipated timing for the final closing of the Private Placement and the anticipated use of the proceeds of the Private Placement. The final closing of the Private Placement could be delayed or may not be completed at all if some condition to the closing is not satisfied. Accordingly, there is a risk that the final closing of the Private Placement will not be completed within the anticipated time or at all. The intended use of the proceeds of the Private Placement by Veraz might change if the board of directors of the Company determines that it would be in the best interests of Veraz to deploy the proceeds for some other purposes. Actual results could different materially from those currently anticipated due to a number of factors and risks. The forward-looking statements contained in this news release are made as of the date hereof and except as may be required by applicable securities laws, the Company assumes no obligation to publicly update or revise any forward-looking statements made herein or otherwise, whether as a result of new information, future events or otherwise. Neither the TSX Venture Exchange nor its regulation service provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of the content of this news release.
Veraz Petroleum Ltd.