ShaMaran Petroleum Corporation reports that it has increased the $50 million private placement previously announced on October 25, 2011 to $51 million.
The Company will now sell on a non-brokered, private placement basis an aggregate of up to 127.5 million common shares of the Company at a price of $0.40 per common share for gross proceeds of up to $51 million. The shares issued pursuant to the private placement are subject to a four month hold period.
A 4% finder’s fee, payable in cash, will be paid on a portion of the private placement.
Net proceeds of the private placement will be used towards ongoing development, appraisal and exploration work on the Company’s projects in Kurdistan as well as for general working capital purposes.
The private placement is subject to regulatory approval.