Marauder cancels C$26 million private placement

By Sheri Kasprzak

Atlanta, May 13 - Marauder Resources East Coast Inc. has dropped its plans to raise C$26 million in a private placement.

"Given the current market conditions, the company and its agents, Dundee Securities Corp., have concluded that the company is unable to complete this financing at this time," said Marauder's president, Bob Shields, in a statement.

"We have advised the operator that we will not be proceeding with the Gran Pre block farm in. While we are disappointed not to proceed with the previously announced program, the company remains in a very strong position with over C$14 million in the bank and present worth of probable and possible reserves of C$467 million before tax on a 10% discounted basis based on escalated prices as per the reserve report prepared by Martin & Brusset Associates."

Shields went on to say in the statement that the company is looking at alternatives for capital.

The company had planned to use the proceeds from the offering to drill a well offshore of Nova Scotia.

The company had announced April 4 that it planned to sell 13,333,333 flow-through shares at C$1.50 each and 4 million units at C$1.50 each. The units had been comprised of one share and one half-share warrant, the whole of which was exercisable at C$2.00 each for 18 months.

Based in Calgary, Alta., Marauder is an oil and natural gas exploration and development company.

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