Iona Energy Inc. has engaged Casimir Capital Ltd. (Casimir) to act as lead underwriter on a financing for the Company to raise $20,000,200 through the completion of a private placement on a "bought deal" basis (the "Offering"). The Offering will be in the form of common shares of the Company (the "Shares") at a price of $0.55 per Share. The Company will also grant the underwriters an option exercisable at any time prior to closing to increase the size of the Offering by an additional 15%, which would result in additional gross proceeds to the Company of $3,000,030.

The Offering is subject to the approval of the TSX Venture Exchange. Pursuant to applicable securities laws, all securities issued pursuant to the Offering will be subject to a hold period of four months following the closing of the Offering. The Offering is expected to close on or about January 31, 2013 in conjunction with the anticipated closings of Iona's previously announced Huntington acquisition, senior secured reserve-based lending facility (the "RBL"), and second lien secured loan notes (Second Notes).

Tags: Iona Energy Inc.