CALGARY, ALBERTA–(EMWNews – July 17, 2008) –
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Desmarais Energy Corporation (TSX VENTURE:DES) (“Desmarais” or the “Corporation”) is pleased to announce that, subject to regulatory approval, it intends to proceed with a non-brokered private placement (the “Private Placement”) financing of up to 3,000,000 units (the “Units”) of the Corporation at a price of $0.13 per Unit for aggregate gross proceeds of up to $390,000. Each Unit will be comprised of one common share in the capital of the Corporation and one common share purchase warrant (a “Warrant”). Each Warrant will be exercisable into one common share in the capital of the Corporation at any time on or before the date that is 24 months after the closing of the Private Placement at a price of $0.17 per share if exercised during the first 12 months subsequent to closing of the Private Placement and $0.22 per share if exercised at any time subsequent to the date that is 12 months from the closing of the Private Placement but prior to the expiry date of the Warrants.
Proceeds of the private placement will be used to pay down existing debt and for general working capital purposes.
Certain statements regarding Desmarais include management’s assessments of future plans and operations, may constitute forward-looking statements under applicable securities laws and necessarily involve known and unknown risks and uncertainties, most of which are beyond Desmarais’ control. These risks may cause actual financial and operating results, performance, levels of activity and achievements to differ materially from those expressed in, or implied by, such forward-looking statements.
Such factors include, but are not limited to: the impact of general economic conditions in Canada and the United States; industry conditions including changes in laws and regulations including adoption of new environmental laws and regulations, and changes in how they are interpreted and enforced; competition; the lack of availability of qualified personnel; fluctuations in commodity prices; the results of exploration and development drilling and related activities; imprecision in reserve estimates; the production and growth potential of Desmarais’ various assets; fluctuations in foreign exchange or interest rates; the ability to access sufficient capital from internal and external sources; and obtaining required approvals of regulatory authorities.
Accordingly, Desmarais gives no assurance nor makes any representations or warranty that the expectations conveyed by the forward-looking statements will prove to be correct and actual results may differ materially from those anticipated in the forward looking statements. Desmarais undertakes no obligation to publicly update or revise any forward-looking statements.
The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.
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