The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Globe Investor

News Sources

Take control of your investments with the latest investing news and analysis

Press release from CNW Group

STERLING RESOURCES ANNOUNCES CLOSING OF BOUGHT DEAL FINANCING INCLUDING OVER-ALLOTMENT OPTION

Wednesday, December 22, 2010

STERLING RESOURCES ANNOUNCES CLOSING OF BOUGHT DEAL FINANCING INCLUDING OVER-ALLOTMENT OPTION09:23 EST Wednesday, December 22, 2010NOT FOR DISSEMINATION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATESCALGARY, Dec. 22 /CNW/ - Sterling Resources Ltd. (TSX-V:SLG) ("Sterling" or the "Company") is pleased to announce the closing of its previously announced offering (the "Offering") of 26,670,000 common shares ("Shares") at a price of $3.00 per Share. The Underwriters also exercised in full their over-allotment option to acquire an additional 3,250,500 Shares at a price of $3.00 per Share. The total offering of 29,920,500 Shares resulted in Sterling receiving aggregate gross proceeds of approximately $89.7 million.The Offering was made on a bought deal basis through a syndicate of underwriters co-led by Wellington West Capital Markets Inc. and RBC Capital Markets, and also included Canaccord Genuity Corp., Stifel Nicolaus Canada Inc. and Union Securities Ltd. (collectively, the "Underwriters").The net proceeds of this Offering of approximately $85 million, after fees and expenses, are intended to be used towards: (1) the planned appraisal program on the Cladhan discovery in the first half of 2011; (2) other exploration and appraisal activities in the United Kingdom, Romania, France and the Netherlands; (3) initial pre-development work on the offshore Romania gas projects; and (4) for other corporate purposes.Sterling Resources Ltd. is a Canadian-listed international oil and gas company headquartered in Calgary, Alberta with assets in the United Kingdom, Romania, France and the Netherlands. The shares are listed and posted for trading on the TSX Venture Exchange under the symbol "SLG".This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in any jurisdiction. The Shares will not and have not been registered under the United States Securities Act of 1933, and may not be offered or sold in the United States absent registration, or an applicable exemption from the registration requirements.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.Filer Profile No. 00002072Forward-Looking StatementsAll statements included in this press release that address activities, events or developments that Sterling expects, believes or anticipates will or may occur in the future are forward-looking statements. Specific forward-looking statements in this press release include statements regarding the expected use of proceeds. In addition, statements relating to reserves or resources are deemed to be forward-looking statements as they involve the implied assessment, based on certain estimates and assumptions that the reserves and resources described can be profitably produced in the future. These forward-looking statements involve numerous assumptions made by Sterling based on its experience, perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. In addition, these statements involve substantial known and unknown risks and uncertainties that contribute to the possibility that the predictions, forecasts, projections and other-forward looking statements will prove inaccurate, certain of which are beyond Sterling's control, including: the impact of general economic conditions in the areas in which Sterling operates, civil unrest, industry conditions, changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in commodity prices, foreign exchange or interest rates, stock market volatility and obtaining required approvals of regulatory authorities. In addition there are risks and uncertainties associated with oil and gas operations. Readers should also carefully consider the matters discussed under the heading "Risk Factors" in the Company's Annual Information Form.  Undue reliance should not be placed on these forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. Sterling's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements. These statements speak only as of the date of the press release. Sterling does not intend and does not assume any obligation to update these forward-looking statements except as required by law.Financial outlook information contained in this press release about prospective results of operations, financial position or cash flows is based on assumptions about future events, including economic conditions and proposed courses of action, based on management's assessment of the relevant information currently available. Readers are cautioned that such financial outlook information contained in this press release should not be used for purpose other than for which it is disclosed herein.For further information: Visit www.sterling-resources.com or contact:Mike Azancot, President and Chief Executive Officer, Phone: 44-1330-826764, Mobile: 44-7740-432883, mike.azancot@sterling-resources.co.ukDavid Blewden, Chief Financial Officer, Phone: 44-1330-826766, Mobile: 44-7771-740804, david.blewden@sterling-resources.co.ukGeorge Kesteven, Manager, Corporate and Investor Relations, Phone: (403) 215-9265, Fax: (403) 215-9279, george@sterling-resources.com