Blackbird Energy Inc. (TSXV: BBI) intends to carry out a non-brokered private placement for gross proceeds of up to $1.5 million.
The private placement will consist of flow-through shares at $0.10 per flow-through share for gross proceeds of up to $500,000, and non-flow through units at $0.09 per unit for gross proceeds of up to $1 million.
Each unit will consist of one common share and one-half of one common share purchase warrant, with each whole warrant entitling the holder to purchase one additional common share at $0.15 per warrant share for a period of 24 months following the closing date. The warrants will be subject to an early acceleration provision which provides for the mandatory exercise or expiry of the warrants in the event Blackbird's shares close at $0.30 or higher for at least 10 consecutive trading days. In such event, the warrants will accelerate and expire 30 days after the company has given notice of the acceleration to the warrant holders.
Blackbird intends to pay finder's fees in the form of an 8% cash commission and 8% finder's warrants in connection with the private placement. The private placement is subject to approval from the TSX Venture Exchange and all of the securities issued pursuant to the private placement will be subject to a four-month hold period from the date of issue.
The securities have not been and will not be registered under the U.S. Securities Act or any state securities laws and may not be offered or sold within the U.S. or to U.S. persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such.
"We are pleased to launch this financing at what we believe to be an exciting time for Blackbird. Net proceeds will be used to support the ongoing drilling operations on the Mantario Well, the re-entry of a well on our Bromhead project and to supplement cash on hand for working capital purposes," Garth Braun, Blackbird president and CEO, said in the release.
Mantario Oil Project Update
Blackbird reports that drilling operations on the first success formation well at the company's Mantario oil project in West Central Saskatchewan have commenced, with the well to spud from a surface location at15d-6-26-24W3 to a total depth of 1,000 meters.
Blackbird Energy Inc. is an independent energy company that acquires, explores, and develops petroleum natural gas assets in western Canada. The company is headquartered in Vancouver, B.C.