Oromin Explorations Ltd (“TSX-V:OLE”) is pleased to report that it has, subject to regulatory approval, arranged a brokered private placement of a minimum 2,000,000 units to a maximum of 4,000,000 units at a price of $2.50 per unit to generate gross proceeds of between $5,000,000 and $10,000,000. In addition, Oromin has granted an agent’s option to purchase up to an additional 400,000 units to generate gross proceeds of up to $1,000,000 on the same terms and conditions as outlined below.
The gross proceeds will be used primarily to fund its next phase of work on its Sabodala Property in eastern Sénégal. Each unit will consist of one share and one half share purchase warrant, with every whole warrant entitling the purchase of one additional share of Oromin at $3.30 per share for a period of no longer than two years from the closing date. Beginning on or after four months following the closing date, if for a period of 20 consecutive trading days, the closing price of Oromin’s shares equals or exceeds $5.00, Oromin may give notice in writing that the warrants will expire on the 21st day following delivery of such notice.
J.F. Mackie & Company Ltd. of Calgary, Alberta, has agreed to act as Oromin’s agent in respect of this placement and will receive an 8% cash commission and broker warrants equal to 10% of the number of units sold under this placement. Each broker warrant will entitle the purchase of one Oromin share at a price of $2.75 per share for a period of two years from the closing date.
Oromin is also pleased to report that it has arranged, subject to regulatory approval, a nonbrokered private placement of up to a further 1,600,000 units of Oromin at price of $2.50 per unit, each unit having the same terms as the units issued under the brokered placement. A finder’s fee will also be payable to an arm’s length third party in respect of this placement.
To find out more about Oromin Explorations Ltd. (TSX-V:OLE), visit www.oromin.com
On behalf of the Board of Directors of
OROMIN EXPLORATIONS LTD.
”Chet Idziszek”
Chet Idziszek, President
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY AND ACCURACY OF THIS RELEASE
