GWR Closes Private Placement and Updates Acquisitionadmin
GWR Resources Inc. announce that it has closed its hard dollar private placement for gross proceeds of $331,113 and has issued 2,207,422 units at a price of $0.15 per unit. Each unit consists of one common share plus one warrant. The applicable hold periods expire at midnight on January 3, 2010.
The proceeds of this private placement were largely raised for the Company’s 2009 drill program on the Company’s property near Lac La Hache, B.C.
Two insiders participated in the private placement for a collective investment of $19,800.
Further to the Company’s news release on June 17, 2009, the Company is also pleased to announce that the acquisition of Deep Creek Oil & Gas Inc. (“Deep Creek”) is proceeding. The first milestone was formal approval of Deep Creek’s Proposal by its creditors and also by the court. The second milestone was completion of a $613,500 Private placement. The third milestone was completion of the planned sale of certain oil and gas properties and the corresponding reduction in Deep Creek’s secured indebtedness.
The acquisition of Deep Creek by GWR is still subject to completion of due diligence, execution of a definitive agreement, Deep Creek shareholder approval, and approval by the TSX Venture Exchange. It is anticipated that this acquisition will be completed towards the end of this year.
In order to facilitate the acquisition of Deep Creek by GWR, two of GWR’s insiders participated in the Deep Creek private placement for a collective investment of $200,000. Upon completion of the acquisition, these insiders will receive GWR shares and will have effectively purchased such shares at a price of $0.20 per share.