The following is for immediate release in Canada, November 19, 2014. NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES
TUSCANY ANNOUNCES INITIAL CLOSING OF PRIVATE PLACEMENT
Calgary, Alberta, Canada. Tuscany Energy Ltd. ("Tuscany" or the "Corporation") (TSXV: TUS) is pleased to announce that it has closed the initial tranche of its previously announced non-brokered private placement (the "Private Placement") of common shares of the Corporation issued on a flow-through basis in respect of Canadian development expenses (the "CDE FT Shares"). In this initial tranche, the Corporation has issued an aggregate of 1,318,000 CDE FT Shares at a price of $0.44 per CDE FT Share for aggregate gross proceeds of approximately $580,000. The Corporation paid an aggregate of $28,327 in finder's fees. The remainder of the $1.2 million Private Placement is anticipated to close on November 26, 2014.
The securities issued in this initial tranche of the Private Placement are subject to a four-month hold period under applicable securities laws, which hold period expires on March 20, 2015.
Tuscany will use the proceeds of the Private Placement to incur Canadian Development Expense and will renounce the expenses to subscribers of the CDE FT Shares effective on or before December 31, 2014.
Tuscany closed the initial tranche of the Private Placement today as drilling on the next horizontal development well at Macklin North 91/1-33-39-28W3M, is planned to commence on November 20, 2014 and Tuscany will use the expenses to renounce to subscribers of the CDE FT Shares.
The Macklin North 91/1-33-39-28W3M well is offsetting the previously announced 7-33-39-28W3M disposal well which encountered over 30 feet of potential Dina oil pay.
The securities offered have not been and will not be registered under the United States Securities Act of 1933, as amended and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirement. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
Tuscany is a heavy oil development and production company with reserves, land holdings and production in Canada. The Company's principal focus is the exploitation of oil resources in Alberta and Saskatchewan through horizontal drilling. The majority of the Company's revenue is generated from oil sales in Saskatchewan. The proceeds of the private placement will be used in Tuscany's development drilling program in Saskatchewan.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Robert W. Lamond, Chairman & CEO - or - Charles A Teare, Executive Vice President CFO
TUSCANY ENERGY LTD.
Telephone: (403) 269-9889
Fax: (403) 269-9890
Website: www.tuscanyenergy.com
TSXV: TUS
ADVISORY: Certain information in this news release, including the use of the proceeds to incur Canadian Development Expenses, constitute forward-looking statements under applicable securities laws. Although Tuscany believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them because Tuscany can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. The final closing of the Private Placement could be delayed. The final closing of the Private Placement will not be completed at all if some condition to the closing is not satisfied. Accordingly, there is a risk that final closing of the Private Placement will not be completed within the anticipated time or at all. The intended use of the proceeds of the Private Placement by Tuscany might change if the board of directors of the Corporation determines that it would be in the best interests of Tuscany to deploy the proceeds for some other purposes. The forward-looking statements contained in this news release are made as at the date of this news release and the Corporation does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.
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