Junex Inc. is pleased to announce that its Foragaz No. 4 drilling rig is now installed in preparation for the drilling of the Junex Galt No. 5 Horizontal well that the Company plans to spud next week.
As previously announced on June 26th, the Galt No. 5 Horizontal well is the first well of the next phase of operations on the Galt Oil Property that includes the drilling of the Galt No.5 Horizontal well, the completion of a detailed 3D seismic program, then the drilling of the Galt No. 6 and No. 7 Horizontal wells whose final locations will be determined from the 3D seismic data.
The Company has also completed the call for bids for the acquisition of a 3D Seismic program on the Galt Structure. Junex intends to perform these field operations in the coming weeks at the same time as the drilling of the Galt No 5 Horizontal well.
On-going Private placement
The $10,000,000 private placement announced on May 22, 2015 and July 3, 2015 is expected to close next week. This portion, which is non-brokered, includes:
- An amount of $7,500,000 to be raised through the issuance of units at a price of $0.90 each, each unit made up of one share and one-half of one common share purchase warrant. Each whole warrant will entitle the holder to subscribe for one common share at a price of $1.25 for a period of 24 months and $1.40 for the subsequent 12 months.
- An amount of $2,500,000 to be raised through the issuance of Series A Debentures and Series B Debentures, each in the aggregate principal amount of $1,250,000 and convertible into common shares at a price of $1.17 per share. The Debentures are also accompanied by a total number of 1,388,888 warrants. Each warrant will entitle the holder to subscribe for one common share at a price of $1.25 for a period of 24 months and $1.40 for the subsequent 12 months. Both debentures will mature after five years and bear interest at an annual rate of 12% payable semi-annually. Junex may elect to pay up to 50% of the interest charges in common shares, subject to the approval of the TSX Venture Exchange (the "TSXV"). Both Debentures will be redeemable in cash at all times at the Company's option (subject to payment of a 10% premium on the outstanding principal), subject to conversion at the holder's option if and when Junex elects to so redeem. The Series B Debenture will become convertible at Junex's option at a price of $1.17 per share if (a) the Company obtains a lease to produce petroleum with respect to its Galt project and (b) the 20-day volume weighted average price of the Company's shares is equal to or greater than $1.17.
This private placement remains subject to the filing of customary closing documentation with the TSXV.