CALGARY, ALBERTA, Dec. 7, 2010 (Marketwire) -- Americas Petrogas Inc. (the "Company") (TSX VENTURE:BOE) announces that it has completed the closing of its recently-announced common share private placement offering (the "Offering"). The closing of the Offering consisted of the issuance of 3,000,000 common shares of the Company ("Common Shares") for aggregate gross proceeds of $3,150,000. The Offering is subject to all necessary regulatory approvals, including the final approval of the TSX Venture Exchange (the "Exchange"). The Common Shares issued pursuant to the Offering shall be subject to a four month hold period under applicable securities laws.
The proceeds from the Offering will be used for ongoing exploration and development of the Company's Argentine oil and gas properties, for ongoing advancement of the Bayovar potash project by the Company's subsidiary, GrowMax Agri Corp., and for general working capital purposes.
A finder's fee of 5% will be paid in respect of the Common Shares that were issued pursuant to this Offering.
About Americas Petrogas Inc.
Americas Petrogas Inc. is a Canadian company whose shares trade on the TSX Venture Exchange under the symbol "BOE". Americas Petrogas has oil and gas interests in 16 blocks involving exploration, development and production. API has proven conventional oil and gas reserves, as well as evolving unconventional resource plays including shale gas, shale oil, and tight sand oil and gas in Argentina's prolific Neuquen basin. For more information about Americas Petrogas, please visit www.americaspetrogas.com.
About GrowMax Agri Corp.
GrowMax Agri Corp., a subsidiary of Americas Petrogas Inc., is developing a surface potash (and other minerals) brine reservoir and evaporite deposit at Bayovar in the Sechura Desert of Northwest Peru. Management, along with its partner/investor IFFCO, intends to build GrowMax into a potash and specialty fertilizers company. For more information about GrowMax Agri Corp., please visit www.growmaxagricorp.com.
Certain statements in this Press Release constitute forward-looking statements under applicable securities legislation. These statements include references to the use of the net proceeds by the Company, oil and gas reserves, the development of a surface potash (and other minerals) brine reservoir and evaporite deposit, and the building of a potash and specialty fertilizers company. Such forward-looking statements involve risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. In particular, there is no assurance that net proceeds of the Offering will be used for the purposes indicated. This forward-looking information is subject to known and unknown risks and uncertainties and other factors, which may cause actual results, levels and timing of activity and achievements to differ materially from those expressed or implied by such information.
The common shares offered have not been registered under the U.S. Securities Act of 1933 as amended or any state securities laws, and may not be offered or sold in the United States absent registration or an exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
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 THE RELEASE.
Americas Petrogas Inc.
President and CEO
(403) 685-1880 (FAX)