CALGARY, ALBERTA–(Marketwire – Sept. 22, 2010) –
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Storm Resources Ltd. (TSX VENTURE:SRX) (the “Company”), the junior exploration company formed under the plan of arrangement (the “Plan”) dated August 17, 2010 among Storm Exploration Inc., Arc Energy Trust and other parties, is pleased to announce that a total of 6,562,000 common share purchase warrants (the “Warrants”) issued under the Plan have been exercised for an equal number of common shares. This amount represents the exercise of approximately 99% of the outstanding Warrants. Each whole Warrant entitled the holder to buy one common share of the Company at a price of $3.28, with aggregate proceeds in the amount of $21,522,000 being receivable by the Company from the exercise of the Warrants. All Warrants have either been exercised, or have expired effective September 21, 2010.
The proceeds from the exercise of the Warrants, together with proceeds of a management private placement closed earlier and funds transferred to the Company under the Plan, have provided the Company with cash to fund initial operations as follows:
|Proceeds upon exercise of the Warrants|
|– 6,562,000 common shares at $3.28||$21,522,000|
|Proceeds from management private placement|
|– 2,300,000 common shares at $3.28||7,544,000|
|Transferred to the Company under the Plan||9,370,000|
|Cash Available for Investment||$38,436,000|
In addition, the Company received a portfolio of listed securities under the Plan, which securities have an estimated market value of $15.5 million. Proceeds from the possible future sale of these securities may also be used to fund the Company’s capital programs. The Company has no debt.
Including the common shares issued upon exercise of the Warrants, the Company has a total of 26,376,970 common shares issued and outstanding. The Company is listed on the TSX Venture Exchange under the symbol “SRX”. Operational focus of the Company is on the Horn River Basin, and the Junior and Umbach areas, all in northeastern British Columbia.
Certain information in this press release contains forward-looking information that involves risk and uncertainty. For this purpose, any statements that are contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements often contain terms such as “may”, “will”, “should”, “anticipate”, “expects” and similar expressions. Readers are cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. The Company assumes no obligation to update forward-looking statements should circumstances or management’s estimates or opinions change. Forward-looking statements contained in this press release are expressly qualified by this cautionary statement.
THIS NEWS RELEASE is not for dissemination in the United States or to any United States news services. The common shares of the Company have not and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold in the United States or to any U.S. person except in certain transactions exempt from the registration requirements of the U.S. Securities Act and applicable state securities laws.