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Tangiers sells equity to fund Project Icewine in Alaska

23rd February 2015

Tangiers Petroleum has successfully completed the bookbuild for a placement to domestic and international institutional and sophisticated investors to raise approximately AUD 7.0m

Tangiers Petroleum has successfully completed the bookbuild for a placement to domestic and international institutional and sophisticated investors to raise approximately AUD 7.0m
Funds raised pursuant to the placement will be utilised by Tangiers for completion of the acquisition of Project Icewine, progressing exploration at Project Icewine, and for working capital. Source: Tangiers Petroleum

The placement of approximately 700 million shares was undertaken at one Australian cent per share.

The placement was strongly oversubscribed, according to Tangiers.

Funds raised pursuant to the placement will be utilised by Tangiers for completion of the acquisition of Project Icewine, progressing exploration at Project Icewine, and for working capital.

“The strong support for the Placement speaks volumes to the quality of Project Icewine, and is a recognition of the outstanding upside potential that the project offers for investors,” said Dave Wall, Tangiers managing director. “Project Icewine benefits from a unique combination of conventional and unconventional potential, along with generous rebates offered by the State of Alaska. We look forward to completing the acquisition of the project with funds raised from this placement as well as progressing exploration.”

“Planning and permitting for the drilling of our first well and acquisition of 3D seismic is already underway and we will be providing updates to the market on progress in the very near term. In addition to increasing operational activity over the coming months, the company continues to progress strong early interest in Project Icewine from a number of potential funding partners and we hope to be able to provide news on that front later this year.”

Placement participants will receive one free attaching option for every two Placement shares, with the options exercisable at two cents and expiring 1 March 2018. Tangiers will apply to the ASX for quotation of the placement options.

Full details of the placement are set out in the prospectus that was lodged by Tangiers with the ASX on Monday 16 February 2015.

 “The Board of Tangiers welcomes our new shareholders, and we thank our existing shareholders for their ongoing support.”

Hartleys Limited acted as Sole Lead Broker to the Offer. DJ Carmichael Pty Ltd and BBY Limited acted as Co-Managers to the Offer.

Settlement of the placement is scheduled to occur on 27 February 2015 in one tranche, with the shares and options issued pursuant to shareholder approval that was received by Tangiers on 12 February 2015, and pursuant to Tangiers’ ASX Listing Rule 7.1 capacity.

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