VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 17, 2012) - Taipan Resources Inc. ("Taipan" or the "Company") (TSX VENTURE:TPN) is pleased to announce that it has closed the amalgamation (the "Amalgamation") with Lion Petroleum Corp. ("Lion"). Under the terms of the Amalgamation Taipan has issued a total of 20,124,817 common shares to the shareholders of Lion in exchange for all of the issued and outstanding share capital of Lion Petroleum Corp.. The Company has also completed a non-brokered private placement (the "Financing") raising $11,500,000 by the issuance of 23,000,000 units (the "Units") at $0.50 per Unit. Each Unit consists of one common share and one warrant exercisable into an additional common share at a price of $0.60 for a period of five years.
Taipan also announces that it has chosen to maintain a 100% interest and operatorship of Block 2B, and that it will not be proceeding with the proposed Farm-In by NewAge Ltd, as previously announced in the Company's July 3, 2012 press release. Taipan expects to pursue farm-out options in the future for Block 2B and this is expected to result in more favourable terms for Taipan shareholders.
Mr. Charles Watson commented "the closing of Taipan's first major transaction and financing is a very exciting time in the development of the Company. Lion's Block 1 and Block 2B onshore Kenya are highly prospective oil and gas exploration blocks with significant potential. With a 100% interest and operatorship of Block 2B, Taipan has a number of attractive strategic options as the Company moves closer to its drilling program."
Taipan has received TSX Venture Exchange (the "Exchange") approval for the Amalgamation and the Financing. The comprehensive filing statement, describing the Amalgamation and related transactions, has been filed with the Exchange and is available on SEDAR for review.
Alec Robinson, CEO of Lion, has been appointed as President of Taipan and Andrew Bell, Lion's CFO, has been appointed as the CFO of Taipan. Biographies for these two new appointees are set out in the Company's press release dated June 14, 2012.
Union Securities acted as Sponsor for the Transaction and in addition to a cash sponsorship fee received 100,000 common shares of Taipan.
About Taipan Resources Inc.
Taipan Resources is an independent oil and gas exploration company with interests in 9.7 million gross oil and gas exploration acres in Block 1 and Block 2B onshore Kenya. Lion currently holds a 20% working interest in Block 1 (7.8 million acres gross) which is operated by Afren Plc, and a 100% working interest in Block 2B (1.9 million acres). Taipan Resources' total net unrisked prospective resources on the Blocks are 528 million barrels of oil equivalent based upon the NI 51-101 report prepared by Sproule Associates Limited and Afren Plc management estimates. Taipan is traded on the TSX Venture Exchange under the symbol TPN.
The statements contained in this release that are not historical facts are forward-looking statements, which involve risks and uncertainties that could cause actual results to differ materially from the targeted results. The Company relies upon litigation protection for forward looking statements.
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 release.