Petroamerica Oil Corp. has entered into an agreement with Raymond James Ltd. to sell on a reasonable commercial efforts basis, by way of private placement, units of the Company at a price of $10,000 per Unit to raise minimum aggregate gross proceeds of $20,000,000 and maximum aggregate gross proceeds of up to $30,000,000.

Subject to the satisfaction of certain conditions, Deans Knight Capital Management Ltd., on behalf of its clients, has committed to a minimum of $20,000,000 of the Offering.

Each Unit shall consist of a senior secured note of the Company with a par value of $10,000 and bearing interest at a rate of 11.5% per annum, payable quarterly with interest in arrears, with the first payment expected to be due on June 30, 2012 (the "Notes") and one common share purchase warrant. The Notes will mature 36 months from the closing date of the Offering. The Notes will be secured by the Company's property and will be senior to all other indebtedness and liabilities of the Company. Each whole Warrant will entitle the holder to acquire 10,000 common shares of the Company at a price of $0.20 per Common Share for a period of 36 months from the closing date of the Offering.

Tags: Petroamerica Oil Corp