Simba Energy closes first tranche of private placement
July 2, 2014, Vancouver, British Columbia. Simba Energy Inc. (TSXV: SMB, Frankfurt: GDA, OTCQX: SMBZF) (the “Company”) has closed the first tranche of a non-brokered private placement raising gross proceeds of $1,315,090 (the “Private Placement”) by the issuance of 21,988,200 units (the “Units“) at a price of Cdn$0.06 per Unit. Each Unit consists of one (1) common share in the capital of the Company and one (1) full share purchase warrant (a “Warrant“). Each Warrant is exercisable for four years to purchase one additional common share (a “Warrant Share“) at a price of Cdn$0.10 per Warrant Share until June 30, 2016 and, thereafter, at a price Cdn$0.15 per Warrant Share until June 30, 2018.
The Company plans to use the proceeds of the Private Placement to fund exploration commitments associated with the Company’s Production Sharing Contracts in Kenya, retirement of certain debt and general working capital purposes.
The Company paid a finder’s fee equal to 7% of the gross proceeds in respect of the subscriptions placed by a finder in cash in the amount of $10,000 and the issuance 307,000 share purchase warrants (“Finder’s Warrants“). Each Finder’s Warrant entitling the holder to purchase one common share of the Company at a price of $0.10 each until June 30, 2016.
Robert Dinning, John Burns, Keith Margetson, James Dick and Hassan Hassan (the “Insiders“), all directors and/or senior officers of the Company, subscribed for a total of 8,815,000 Units. The Company relied upon exemptions from the valuation and minority shareholder approval requirements of Multilateral Instrument 61-101 contained in section 5.5(b) and 5.7(b), respectively, with respect to the issuance of the Units to the Insiders.
All securities issued pursuant to the Private Placement are subject to a four month hold period expiring on November 1, 2014.
About Simba Energy:
Simba Energy Inc. is establishing itself as a diversified international explorer and developer with a growing oil and gas acreage position in Africa, with onshore Production Sharing Contracts in Kenya, Guinea and Chad.
ON BEHALF OF THE BOARD
“Robert Dinning”
President & CEO
For further information, contact: Mark Sommer, mark@simbaenergy.ca, Toll Free: 1‐ 855‐777‐4622.
Neither the 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.
This release includes certain statements that may be deemed to be “forward-looking statements”. All statements in this release, other than the statements of historical facts, that address events or developments that the Company expects to occur, are forward-looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “plans”, “could” or “should” occur. Forward looking information in this news release includes, without limitation, all statements regarding the use of proceeds. Although the Company believes that the expectations expressed in such forward‑looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward‑looking statements. Factors that cause the actual results to differ materially from those in forward-looking statements include: results of exploration and development activities, regulatory changes, defects in title, availability of materials and equipment, timeliness in government approvals, continued availability of capital and financing and general economic, market and business conditions. The Company cautions the foregoing list of important factors is not exhaustive. Investors and others who base themselves on the Company’s forward-looking statements should carefully consider the above factors as well as the uncertainties they represent and the risk they entail. The Company believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct. Please see the public filings of the Company at www.sedar.com for further information.