Archer Petroleum Corp. (TSXV: ARK) closed the purchase and sale agreement with Arrakis Oil Recovery LLC for a 25% interest in the Peak Project.
The Peak Project, located in Logan County, Ky., totaling 270 acres, is comprised of certain lands which are subject to a joint venture between Arrakis, Peak Concepts LLC, and Phoenix Metals Inc. The Peak joint venture is being carried out through MidAmerica Oil Sands LLC.
Pursuant to the acquisition agreement, Arrakis agreed to sell a 25% interest in the Peak joint venture to Archer in consideration for the issuance of 500,000 common shares of Archer and US $300,000 of expenditures being incurred on the operations of the Peak joint venture, which expenditures shall be incurred on a timeline to be mutually agreed upon by Arrakis and Archer, provided that Archer shall not be required to expend more than US $50,000 in the six months following closing of the acquisition. The membership interests in the Peak joint venture are held as to 25% by Arrakis, 25% by Archer, and 50% by Peak.
In addition, the company has placed its initial order for Sandklene 950 in connection with the Peak Project and, pursuant to the chemical supply agreement on Feb. 21, has issued an additional 5.1 million common shares to Imperial Chemical Company in connection therewith.
The TSX Venture Exchange has approved the acquisition agreement and closing of the transactions contemplated in the acquisition agreement. The Archer shares and the ICC shares are subject to a statutory hold period expiring Dec. 15.
In connection with the gypsy swap announced on July 16, the company paid an aggregate of C $5,165.30 and issued 10,990 warrants to Canaccord Genuity Corp., with each finder's warrant entitling the holder to purchase one additional share at a price of $0.75 per share for the first year after closing of the financing and at a price of $1 per share for the second year after closing of the financing.
Archer Petroleum Corp. is an independent energy company focused on the exploration and development of uranium, oil and gas, and other energy related commodities in North America. The company is based in Vancouver, B.C.