JUN 3, 2008 - 09:27 ET - - Underwriting Syndicate to be Led by Merrill Lynch Canada Inc.
- Closing Expected on June 10, 2008
QUEBEC CITY, QUEBEC--(Marketwire - June 3, 2008) - NOT FOR DISTRIBUTION ON U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.
Junex Inc. (TSX VENTURE:JNX) announces that it will effect a "bought deal" private placement of 3,300,000 common shares at a price of $6.20 per share, for gross proceeds to Junex of $20,460,000. The placement will be made through a syndicate of underwriters to be led by Merrill Lynch Canada Inc.
Junex will grant the underwriters an option to acquire an additional 495,000 common shares at the offering price of $6.20 per share, exercisable prior to closing. If the underwriters' option is exercised in full, Junex will issue a total of 3,795,000 common shares in the private placement, for gross proceeds of $23,529,000.
Junex will use the net proceeds from the private placement for capital expenditures related primarily to drilling and seismic work in the St. Lawrence Lowlands and Gaspesie regions of Quebec. The balance of the net proceeds will be used for general corporate purpose, which may include selective acquisitions as well as other working capital requirements.
The private placement will be effected pursuant to prospectus exemptions under applicable securities legislation and is expected to close on June 10, 2008.
Closing of the private placement is conditional upon receipt of all necessary approvals, including that of the TSX Venture Exchange, and the satisfaction of other customary conditions.
There are currently 54,232,732 common shares of Junex issued and outstanding.
About Junex
Junex is a junior oil and gas exploration company that holds exploration rights on more than 6 million acres of land located in the Appalachian basin in the Province of Quebec. Several recent discoveries in the United States and Eastern Canada have stimulated exploration in Quebec, whose sedimentary basin is located in a favourable geological setting for oil and gas discovery. Junex's strategy consists in entering into partnerships with other exploration companies in order to reduce exploration risks. In parallel to its exploration efforts, Junex's goal is to achieve positive cash flows from its natural brine and drilling services operations. Junex also owns approximately 9.4% of the issued and outstanding shares of Petrolia Inc. (TSXV : PEA) and 1.1% of the issued and outstanding shares of Gastem Inc. (TSXV : GMR).
Forward-looking statements
This news release contains certain forward-looking statements. These statements relate to future events or future economic performance of Junex and carry risks, uncertainties and other factors - both known and unknown - that may appreciably affect Junex's results, economic performance or accomplishments when considered in light of the content or implications of statements made by Junex. Actual events or results could be significantly different. Accordingly, investors should not place undue reliance on forward-looking statements. Junex does not intend, and undertakes no obligation unless required under securities legislation, to update these forward-looking statements.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
FOR FURTHER INFORMATION PLEASE CONTACT:
Junex Inc.
Mr. Jean-Yves Lavoie
President
418-654-9661
or
Junex Inc.
Mr. Dave Pepin
Corporate Affairs
418-654-9661