Archer Petroleum Corp. Closes Acquisition Agreement With Arrakis Oil Recovery, LLC
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug. 19, 2013) - Archer Petroleum Corp. (TSX VENTURE:ARK)(DBFrankfurt:A6VA) ("Archer" or the "Company") is pleased to announce that it has closed the purchase and sale agreement (the "Acquisition Agreement") with Arrakis Oil Recovery, LLC ("Arrakis") for the acquisition by Archer of a 25% interest in the Peak Project.
The Peak Project, located in Logan county, Kentucky, totaling approximately 270 acres, is comprised of certain lands included in mining permit application Number 071-9702 which are subject to a joint venture (the "Peak JV") between Arrakis, Peak Concepts, LLC ("Peak") and Phoenix Metals, Inc. The Peak JV is being carried out through MidAmerica Oil Sands, LLC.
Pursuant to the Acquisition Agreement, Arrakis agreed to sell a 25% interest in the Peak JV to Archer in consideration for the issuance of 500,000 common shares of Archer (collectively, the "Archer Shares") and US$300,000 of expenditures being incurred on the operations of the Peak JV, which expenditures shall be incurred on a timeline to be mutually agreed upon by Arrakis and Archer, provided that Archer shall not be required to expend more than US$50,000 in the six months following closing of the acquisition. The membership interests in the Peak JV are held as to 25% by Arrakis, 25% by Archer, and 50% by Peak.
In addition, the Company is pleased to announce that it has placed its initial order for Sandklene 950 in connection with the Peak Project and, pursuant to the Chemical Supply Agreement dated February 21, 2013, has issued an additional 5,100,000 common shares (the "ICC Shares") to Imperial Chemical Company in connection therewith.
The TSX Venture Exchange has approved the Acquisition Agreement and closing of the transactions contemplated in the Acquisition Agreement. The Archer Shares and the ICC Shares are subject to a statutory hold period expiring December 15, 2013.
None of the securities sold in connection with the Financing will be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
The Company further announces that in connection with the Gypsy Swap previously announced in the Company's news release dated July 16th, 2013, the Company paid an aggregate of $5,165.30 and issued 10,990 warrants (each, a "Finder's Warrants") to Canaccord Genuity Corp, with each Finder's Warrant entitling the holder to purchase one additional share at a price of $0.75 per share for the first year after closing of the Financing and at a price of $1.00 per Share for the second year after closing of the Financing.
About Archer Petroleum:
Archer Petroleum Corp. is an independent energy company focused on exploration and development in North America. The Company's shares are listed on the TSX Venture Exchange under the symbol "ARK" and the DB Frankfurt exchange under "A6VA". Further information on Archer can be found on the company's website at www.archerpetroleum.com.
ON BEHALF OF ARCHER PETROLEUM CORP.
Colin Bowkett, Director
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 news release.