WesternZagros Resources has announced its intention to raise C$40 million in a brokered private placement of common shares.
The funds will be raised through a syndicate of agents led by TD Securities Inc. and Scotia Capital Inc. (the “Agents”) on an overnight-marketed best efforts basis (the “Offering”).
WesternZagros has also granted the Agents an option to place up to an additional C$10 million of Shares, which is exercisable by the Agents at any time up to 2 business days prior to closing. If this option is fully exercised, total gross proceeds will be approximately C$50 million.
The net proceeds of the Offering will be used for: the drilling of the Company’s Sarqala-1 re-entry well and the Mil Qasim-1 exploration well; future exploration on the Company’s oil & gas properties; working capital; and for general corporate purposes.
Shares issued under the Offering will be subject to a four month hold period in accordance with applicable Canadian securities laws.
Closing of this Offering is expected to occur on or about March 10, 2011 and is subject to receipt of all necessary regulatory approvals including that of the TSX Venture Exchange.