CALGARY, ALBERTA--(Marketwire - Nov. 9, 2012) -
NOT FOR DISSEMINATION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
MAGNUM ENERGY INC. ("Magnum" or the "Corporation") (TSX VENTURE:MEN) - Further to its press release dated October 31, 2012, Magnum is pleased to announce that it has filed a preliminary short form prospectus (the "Preliminary Prospectus") in connection with the offering of up to a maximum of 6,634,615 class A common shares ("Common Shares") of the Corporation (the "offered Common Shares") and a maximum of 5,750,000 Common Shares issued on a "flow-through" basis under the Income Tax Act (Canada) (the "Offered Flow-through Shares") to the public at a price of $0.13 and $0.15 per Common Share and Flow-Through Shares respectively, for aggregate proceeds of a minimum of $600,000 and a maximum of $1,725,000 (the "Offering"). The offered Common Shares and Flow-Through Shares are collectively referred to as the "Offered Shares". Macquarie Private Wealth Inc. (the "Agent") has been engaged to sell the Offered Shares on a commercially reasonable efforts agency basis.
It is presently anticipated that the net proceeds from the issuance of Offered Shares will be used by the Corporation for the expansion of the Corporation's oil production and reserves in its Provost Viking Oil Prospect in Alberta. Proceeds from the issuance of Offered Flow-through Shares under the Offering will be used by the Corporation to incur Canadian Development Expenses which will be renounced to subscribers as Canadian Exploration Expenses.
Magnum has obtained a receipt for the Preliminary Prospectus filed with the securities regulatory authorities in each of the provinces of Alberta, British Columbia and Ontario. Magnum has made application to have the Offered Shares listed for trading on the TSX Venture Exchange. The Closing of the Offering is subject to certain closing conditions, including, but not limited to, the issuance of a receipt by the securities regulatory authorities in each of the provinces of Alberta, British Columbia and Ontario for a final short form prospectus qualifying the distribution of the Offered Shares, the approval of the TSX Venture Exchange and completion of satisfactory due diligence by the Agent.
About Magnum Energy Inc.
Magnum is a junior oil and gas producer with operations located in the Western Canadian Sedimentary Basin. The Corporation produces from Viking oil operations in Alberta, gas operations in Alberta and maintains a 100% ownership of the Sedalia gas facility in East-Central Alberta.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any state in the United States in which such offer, solicitation or sale would be unlawful. The securities referred to herein have not been and will not be registered or sold under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
Forward looking statements:
The information and statements in this news release contain certain forward-looking information relating to: (i) the proposed issuance of the Offered Shares, closing of the Offering and the use of net proceeds of the Offering. All statements other than statements of historical fact may be forward-looking information. This forward-looking information is subject to certain risks and uncertainties and may be based on assumptions that could cause actual results to differ materially from those anticipated or implied in the forward-looking information. These assumptions include market acceptance of the terms of the Offering. The outcome and timing of the proposed Offering could differ materially from those expressed in, or implied by, such forward looking information, and accordingly, no assurances can be given that any of the events anticipated by the forward-looking information will transpire or occur or, if any of them do, what benefits the Corporation will derive from them. The Corporation's forward-looking information is expressly qualified in its entirety by this cautionary statement. Except as required by law, the Corporation undertakes no obligation to publicly update or revise any forward-looking information.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Magnum Energy Inc.
President & CEO
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