Osum Announces $100 Million Private Placement

abarrelfullabarrelfull wrote on 25 Nov 2010 08:40
Tags: canada kic oil-sands osum

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Osum Oil Sands Corp. ("Osum" or the "Company") is pleased to announce that it has entered into an agreement (an "Investment Agreement") to issue, on a private placement basis, to a wholly-owned subsidiary of Korea Investment Corporation ("KIC") 7,692,308 common shares at $13.00 per share for total gross proceeds of approximately $100 million. The Investment Agreement also provides KIC with the right to participate in future equity financings, board observer rights and, in the event that KIC holds more than 10% of the outstanding common shares, the right to designate a nominee of the board of directors of Osum. After giving effect to the private placement, KIC will hold less than 10% of the outstanding common shares. The transaction is expected to close on or about November 26th, 2010 subject to satisfaction of customary closing conditions.

The proceeds from this financing together with Osum's existing working capital will be invested directly in the Company's in situ projects and general corporate purposes.

Osum filed a commercial application and Environmental Impact Assessment for the 35,000 barrel per day Taiga Project at Cold Lake in December 2009 and expects to receive regulatory approval by mid-2011. First oil from the Taiga Project is anticipated in early 2014.

Osum also continues to drive forward on its other core area in the Saleski Carbonates. Construction of a pilot project on the joint venture lands in Saleski, where Osum is a 40% non-operating partner, is nearing completion with first steam anticipated prior to year end. The results from this pilot are expected to provide valuable insights into how to best develop the Grosmont Carbonate resource.

Credit Suisse Securities (Canada), Inc. acted as sole financial advisor to Osum while Macquarie Capital Markets Canada Ltd. acted as sole financial advisor to KIC.

About KIC

KIC is a government-owned investment management company established under statute in 2005 to manage assets of the Government of Korea and the Bank of Korea. KIC is headquartered in Seoul, Korea and has been designated to operate independently and on a commercial basis with the aim of investing and enhancing the sovereign wealth of the Republic of Korea and contributing to the development of its domestic industry. KIC invests in public and private equities, bonds, real-estate, alternative assets, foreign currencies and derivatives.

For more information about KIC, please visit www.kic.go.kr/en/.

About Osum

Osum is a privately held Alberta based company focused on the application of environmentally responsible in situ recovery technologies within Canada's oil sands and carbonates. Additional information on the Company is available at www.osumcorp.com.

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