16 Nov 2012 15:54
FRONTERA RESOURCES CORPORATION
("Frontera" or the "Company")
Houston, Texas, U.S.A. - 16 November 2012
FINANCING UPDATE
Frontera Resources Corporation (London Stock Exchange, AIM Market, FRR), the oil and gas exploration and production company with assets in the country of Georgia, today announces that it has drawn down on its previously announced Standby Equity Distribution Agreement ("SEDA") with YA Global Master SPV Ltd in the amount of £217,755.00 (the "Draw Down").
The Draw Down has been undertaken at a price of 0.4577 pence per share, representing a 5% discount to Frontera's volume weighted average price on 8 November 2012, in accordance with the terms of the SEDA, and will result in the issue of 47,575,923 new ordinary shares of US$0.00004 each in the Company ("New Ordinary Shares").
Application has been made for the New Ordinary Shares to be admitted to trading on AIM, which is anticipated to occur on 22 November 2012 ("Admission"). The New Ordinary Shares will rank pari passu with the Company's existing issued ordinary shares.
Following Admission, the enlarged issued share capital of the Company will be 2,346,409,554 ordinary shares.
Enquiries:
Frontera Resources CorporationLiz WilliamsonVice President, Investor Relations and Corporate Communications(713) 585-3216lwilliamson@fronteraresources.com
Nominated Adviser and Joint Broker:
finnCap Limited
Matt Goode / Christopher Raggett
+44 (0) 20 7220 0500
Joint Broker:
Cornhill Capital LimitedNick Bealer / Stefan Olivier+44 (0)20 7710 9610
Financial PR:
BuchananTim Thompson / Ben Romney+44 (0)20 7466 5000timt@buchanan.uk.com
Notes to Editors:
About Frontera Resources Corporation
1. Frontera Resources Corporation is an independent Houston, Texas, U.S.A.-based international oil and gas exploration and production company whose strategy is to identify opportunities and operate in emerging markets in Eastern Europe around the Black Sea. Frontera currently operates in the country of Georgia where it holds a 100 percent working interest in a production sharing agreement with the government of Georgia. This gives Frontera the exclusive right to explore for, develop and produce oil and gas from a 5,060 square kilometer area in eastern Georgia known as Block 12. Frontera Resources Corporation shares are traded on the London Stock Exchange, AIM Market - Symbol: FRR. For more information, please visit www.fronteraresources.com .
2. This release may contain certain forward-looking statements, including, without limitation, expectations, beliefs, plans and objectives regarding the transactions, work programs and other matters discussed in this release. Exploration for oil is a speculative business that involves a high degree of risk. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are: risks inherent in oil and gas production operations; availability and performance of needed equipment and personnel; the Company's ability to raise capital to fund its exploration and development programs; seismic data; evaluation of logs, cores and other data from wells drilled; inherent uncertainty in estimation of oil and gas resources; fluctuations in oil and gas prices; weather conditions; general economic conditions; the political situation in Georgia and relations with neighboring countries; and other factors listed in Frontera's financial reports, which are available at www.fronteraresources.com. There is no assurance that Frontera's expectations will be realized, and actual results may differ materially from those expressed in the forward-looking statements