By Laura Lutz
Des Moines, April 3 - Heartland Resources Inc. is preparing to settle an C$8.5 million private placement of units with Skana Capital Corp.
Skana bought 10 million units of one share and one warrant at C$0.85 per unit. Each warrant will be exercisable at C$1.50 for one year.
Expiry of the warrants may be accelerated to 30 days if the weighted average trading price of the company's shares is at least C$2.50 for 20 consecutive trading days.
The closing will be part of a non-brokered private placement that is expected to include up to C$50 million of units on the same terms. That deal priced on March 1.
Of those proceeds, Heartland plans to use C$18.5 million to purchase all of the outstanding shares of Pebble Petroleum Inc. and to fund repayment of Pebble's C$17.2 million outstanding convertible debt with Emerald Bay Holdings Ltd. An additional $25 million will be used for a four-well pilot drilling program on licenses owned by Pebble.
Heartland is a resource company based in Vancouver, B.C.
| Issuer: | Heartland Resources Inc.
|
| Issue: | Units of one share and one warrant
|
| Amount: | C$8.5 million
|
| Units: | 10 million
|
| Price: | C$0.85
|
| Warrants: | One per unit
|
| Warrant expiration: | One year
|
| Warrant strike price: | C$1.50
|
| Agent: | Non-brokered
|
| Announcement date: | April 3
|
| Stock symbol: | TSX Venture: SKN
|
| Stock price: | C$1.44 at close April 3
|
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