Lion Energy receives final private placement acceptance, and independent assessment report
TSX.V - LEO
VANCOUVER, March 25 /CNW/ - Lion Energy Corp. (the "Company" or "Lion
Energy") (TSX.V - LEO) announces that on March 24, 2010 it SEDAR-filed a
report dated January 21, 2010 covering an independent assessment of contingent
prospective resources of the Company's properties located in east Africa. This
report, prepared by Gaffney, Cline & Associates Ltd., technical and management
advisors to the petroleum industry, of Hampshire, UK, is a redacted version of
a full report earlier filed with the TSX Venture Exchange (the "Exchange"). A
copy of the redacted report is available for viewing at www.sedar.com.
As previously announced in the Company's March 15, 2010 news release, the
Exchange gave its final acceptance of the farm-in agreement between the
Company and Africa Oil Corp., pursuant to which Lion Energy has the right to
earn an interest in five petroleum blocks located in the Republic of Kenya and
in Puntland, Somalia. On March 19, 2010, the Exchange also gave its final
acceptance of the Company's private placement that conditionally closed in
June, 2009. Acceptance of the private placement by the Exchange was
conditional upon prior acceptance of the farm-in agreement. Under the terms of
the private placement, Lion Energy issued 10,900,000 units, each unit
consisting of one common share (the "Shares") of the Company and one
non-transferable warrant (the "Warrants"). These Warrants permit the holders
to purchase up to a further 10,900,000 common shares of the Company (the
"Warrant Shares") at a price of $0.50 until June 20, 2011. All restrictive
hold periods attaching to the Shares, Warrants and Warrant Shares have now
expired. Proceeds from the private placement being $3,270,000, together with
interest earned over the last nine months, will be used by the Company to
honour its commitments under the farm-in agreement. A fee of $163,500 plus a
Warrant for the purchase of up to 545,000 Warrant Shares has been issued to
Peninsula Merchant Syndications Corp., the Company's finder in connection with
the private placement.
Mr. Ian Gibbs, a nominee for election as a director at the Company's
annual and special general meeting scheduled for April 12, 2010, has agreed to
accept a position as Company director effective April 1, 2010. Mr. Gibbs is a
Canadian chartered accountant and a graduate of the University of Calgary
where he obtained a B.Com degree in 1991. Mr. Gibbs is presently Chief
Financial Officer of the aforementioned Africa Oil Corp., one of the Lundin
group of companies (since October 2006). Mr. Gibbs began his association with
the Lundin group in September 2004, and since that time has held a variety of
prominent positions. Mr. Gibbs is also a director of Petro Vista Energy Corp.,
and Fortress Minerals Corp. The Company is pleased to announce that John R.
Nelson has agreed to act as the Company's Interim Chief Financial Officer in
place of Jeannine Webb who resigned on February 25, 2010.
About the Company:
The Company is a well-financed, Canadian exploration company with a
vision to develop a significant presence in the developing oil and gas
industry. The Company signed an agreement with Africa Oil Corp. that grants
the Company the right to earn an interest in five petroleum blocks located in
the Republic of Kenya and in Puntland, Somalia. The Company further holds a
27.6% interest in Encanto Potash Corp., a junior potash exploration company
and a 20% interest in Sulphur Solutions Inc., an emerging fertilizer company
developing state-of-the-art patented technology for the production of
micronized sulphur fertilizer.
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On behalf of the Board,
LION ENERGY CORP.
"Brian Thurston"
President and CEO
>>
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 NEWS RELEASE
This release includes certain statements that may be deemed
"forward-looking statements". All statements in this release, other than
statements of historical facts, that address exploration drilling, exploration
activities and events or developments that the Company expects to occur, are
forward-looking statements. Forward-looking statements in this news release
include statements regarding the Company's intentions or plans, whether of a
corporate or exploratory nature. Although the Company believes the
expectations expressed in such forward-looking statements are based on
reasonable assumptions, such statements are not guarantees of future
performance and actual results or developments may differ materially from
those forward-looking statements. Factors that could cause actual results to
differ materially from those in forward-looking statements include market
prices, exploration and exploration successes, and continued availability of
capital and financing and general economic, political, market or business
conditions. These statements are based on a number of assumptions, including,
among others, assumptions regarding general business and economic conditions,
the timing and receipt of regulatory and governmental approvals for the
transactions described herein, the ability of the Company and other parties to
satisfy stock exchange and other regulatory requirements in a timely manner,
the availability of financing for the Company's proposed transactions and
programs on reasonable terms, and the ability of third-party service providers
to deliver services in a timely manner. Investors are cautioned that any such
statements are not guarantees of future performance and actual results or
developments may differ materially from those projected on the forward-looking
statements. The Company does not assume any obligation to update or revise its
forward-looking statements, whether as a result of new information, future
events or otherwise, except as required by applicable law or regulatory
policies.
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/For further information: To find out more about the Company, please
visit our website at www.lionenergycorp.com/
