VANCOUVER, BRITISH COLUMBIA--(Marketwire -05/31/12)- Taipan Resources Inc. ("Taipan" or the "Company") (TPN.V) is pleased to announce that it intends to complete a non-brokered private placement financing for the sale of a minimum of 16,666,667 to a maximum of 25,000,000 units ("Units") at a price of $0.60 per Unit for gross proceeds of $10,000,000 to $15,000,000 (the "Offering"). Each Unit consists of one common share of the Company (a "Common Share") and one-half of one common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant will entitle the holder thereof to acquire a Common Share at the exercise price of $1.00 per share for a period of up to 60 months following the closing of the Offering. The Offering is being conducted in conjunction with the previously announced acquisition of Lion Petroleum Corp. (see press release dated May 17, 2012).
The Company intends to use the gross proceeds of the Offering to: (i) pay an Extension Minimum Work Commitment Fee in return for a twelve month extension of the exploration period on Block 2B onshore Kenya, (ii) finance its exploration program on Block 1 and Block 2B onshore Kenya, and (iii) for general working capital purposes.
Block 1 and Block 2B onshore Kenya total 9.7 million gross exploration acres with net unrisked prospective resources of 528 million barrels of oil equivalent based upon the NI 51-101 report prepared by Sproule Associates Limited and Afren Plc management estimates.
The Common Shares will be subject to statutory resale restrictions for a period of four months and one day following the closing of the Offering, which is expected to occur on or about June 25, 2012 and remains subject to final approval of the TSX Venture Exchange to the Offering and the acquisition of Lion Petroleum.
About Taipan Resources Inc.
Taipan Resources is actively pursuing the acquisition of international oil and gas exploration and development assets. The company is focused on acquisitions in its core geographic regions: Africa, the Middle East and South America, where opportunities remain for junior oil and gas companies to access large-scale oil and gas resources with significant exploration and development upside. Taipan is traded on the TSX Venture Exchange under the symbol TPN.
The statements contained in this release that are not historical facts are forward-looking statements, which involve risks and uncertainties that could cause actual results to differ materially from the targeted results. The Company relies upon litigation protection for forward looking statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Taipan Resources Inc.
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