Edge Resources Inc. has closed the first tranche, or $1,250,000, of the previously announced bought-deal financing. Additionally, the Company has retired $500,000 of secured debt, which was converted into common shares of the Company at an issue price of $0.15 per share.

Fees related to the financing were limited to an aggregate of $112,500 in cash (2.5% of the gross proceeds) and 750,000 common shares (2.5% of the aggregate common shares issued). There were not any broker warrants issued in conjunction with this financing. Additionally, there were no penalties, fees or warrants associated with the issuance of the $500,000 debt, retirement of the debt, or conversion of the debt to equity.

The net proceeds of the financing are intended for the development of the Company's oil assets with the objective of significantly increasing production and reserves from the Company's recently acquired assets in Primate, Saskatchewan and from the Company's existing oil- producing property in Grand Forks, Alberta.

Brad Nichol, President & CEO of Edge, commented, "This capital injection affords us the opportunity to commence a completely oil-focused initiative with expectations for significant increases in oil production and associated cash flow within the year. Notwithstanding, we are very fortunate to have initiated a strategic partnership with a global powerhouse in Henderson and we look forward to the benefits of such a partnership for years to come."

Tags: Edge Resources