WesternZagros Resources Announces Terms of Overnight Marketed Private Placement
CALGARY, ALBERTA--(Marketwire - Feb. 24, 2011) -
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
WesternZagros Resources Ltd. (TSX VENTURE:WZR) ("WesternZagros" or the "Company") is pleased to announce that is has priced its previously announced overnight marketed best efforts private placement of common shares (the "Shares"). The syndicate of agents led by TD Securities Inc. and Scotia Capital Inc. and including Macquarie Capital Markets Canada Ltd., RBC Capital Markets and Stifel Nicolaus Canada Inc. (collectively the "Agents") will sell 83,350,000 Shares at a price of
.48 per Share for gross proceeds of $40,008,000. WesternZagros has also granted the Agents an option to place up to an additional 20,850,000 Shares at
.48 per Share at any time up to 2 business days prior to closing. If this option is fully exercised, total gross proceeds will be $50,016,000. The net proceeds of the offering will be used for: the drilling of the Company's Sarqala-1 re-entry well and the Mil Qasim-1 exploration well; future exploration on the Company's oil & gas properties; working capital; and for general corporate purposes.
Shares issued under the offering will be subject to a four month hold period in accordance with applicable Canadian securities laws.
Closing of this offering is expected to occur on or about March 10, 2011 and is subject to receipt of all necessary regulatory approvals including that of the TSX Venture Exchange.
