Kelt Exploration Ltd. (TO: KEL) completed a bought deal private placement offering of 11.5 million common shares sold at C$8 per share and 2 million shares issued on a "flow-through" basis sold at $9.80 per share.
The company received gross proceeds of $111.6 million. Net proceeds will be used to fund its 2013 and 2014 capital expenditures and for general working capital purposes.
Peters & Co. Ltd. led the syndicate of underwriters FirstEnergy Capital Corp., CIBC World Markets Inc., Dundee Securities Ltd., RBC Dominion Securities Inc., GMP Securities LP, Stifel Nicolaus Canada Inc., Macquarie Capital Markets Canada Ltd., National Bank Financial Inc., Cormark Securities Inc., Scotia Capital Inc., AltaCorp Capital Inc., and Paradigm Capital Inc.
The common shares and flow-through shares issued in connection with the Offering are subject to a statutory four month hold period under applicable securities legislation. Kelt shall, pursuant to the provisions in the Income Tax Act (Canada), incur Canadian exploration expenses, including, if applicable, deemed Canadian exploration expenses, after Aug. 27 and prior to Dec. 31, 2014, in the aggregate amount of not less than the total amount of the gross proceeds raised from the issue of flow-through shares. Kelt shall renounce the qualifying expenditures so incurred to the purchasers of the flow-through shares such that $9.80 per flow-through share shall be deductible against the subscribers' income for the fiscal year ended Dec. 31.
Kelt Exploration Ltd. is an oil and gas company focuses on exploration, development and production of crude oil and natural gas resources, primarily in west central Alberta and northeastern British Columbia. The company based in Calgary.