TSX-V: RUU – April 28, 2011
Stans Energy Corp (TSX-V: RUU, OTCQX: HREEF) (“Stans” or the “Company”) is pleased to announce that it has closed its previously reported private placement (see press releases dated March 30, 2011, and April 14, 2011) pursuant to which the Company has issued 15,135,136 units (the “Units”) at a price of $1.85 per Unit to raise aggregate gross proceeds of $28,000,001.60 CAD (the “Offering”). Each Unit consists of one common share in the capital of the Company and one-half of one common share purchase warrant. Each whole warrant entitles the holder thereof to acquire one common share at a price of $2.25 CAD until April 28, 2013. Stifel Nicolaus Canada acted as Lead Agent for the Offering, with Clarus Securities Inc acting as Co-Manager (collectively, the “Agents”). The Agents received a cash commission equal to 6% of the gross proceeds of the Offering, and broker warrants entitling the Agents to purchase 908,108 shares at $1.85 CAD per share at any time up to and including April 28, 2013.
The proceeds of the Private Placement will be used for a feasibility study on Kutessay II and Kalesay, purchase of the KCMP Rare Earth (RE) Processing Complex, refurbishment and upgrades to the KCMP RE Processing Complex, Aktyuz exploration and for working capital.
All of the common shares, warrants and broker warrants issued pursuant to the Offering are subject to a four‐month hold period ending on August 29, 2011. The Company has received the conditional approval from the TSX Venture Exchange for the common shares and warrants issued on closing of the Offering.
Robert Mackay, President and CEO of Stans Energy Corp. stated, “The money raised from this financing will enable Stans to aggressively pursue our plans to become a significant Heavy Rare Earth producer in the near term, beginning with closing of Stans’ acquisition of the Heavy Rare Earth Processing Facility previously announced. Once the transaction is complete, a program to upgrade and refurbish the Complex will begin immediately.”
Please visit Stans Energy’s website – www.stansenergy.com for additional information, or contact:
President and CEO, Stans Energy Corp.
Ph. 647 426 1865
Manager Investor Relations, Stans Energy Corp
Ph. 647 426 1865
Stans Energy Corp.
Stans Energy Corp. is focused on developing properties containing Rare Earth Elements (REEs). The company continuously examines and evaluates new opportunities to acquire and develop proven resource properties in areas of the former Soviet Union. The headquarters of the company is located in Toronto, Ontario, Canada, and its wholly-owned subsidiary, Stans Energy KG, is located in Bishkek, Kyrgyzstan. Stans Energy Corp’s Chairman, Rodney Irwin, was the former ambassador to the Russian Federation for Canada, and currently serves as the Honorary Consul of the Kyrgyz Republic for Canada.
This press release is not an offer or a solicitation of an offer of securities for sale in the United States. The Units and the Common Shares and Warrants have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration.
FORWARD LOOKING STATEMENTS: This document includes forward-looking statements as well as historical information. Forward-looking statements include, but are not limited to, use of proceeds from the Offering, the
completion of the Offering, the continued advancement of the company’s general business development, research development and the company’s development of mineral exploration projects. When used in this press release , the words “will”, “shall”, “anticipate”, “believe”, “estimate”, “expect”, “intent”, “may”, “project”, “plan”, “should” and similar expressions may identify forward-looking statements. Although Stans Energy Corp. believes that their expectations reflected in these forward looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statement. Important factors that could cause actual results to differ from these forward- looking statements include the potential that fluctuations in the marketplace for the sale of minerals, the inability to implement corporate strategies, the ability to obtain financing and other risks disclosed in our filings made with Canadian Securities Regulators.
Closing of the Processing Complex transaction is subject to TSX Venture Exchange approval. 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.