Terrace Energy Announces Strategic Financing With LG
Terrace Energy Corp. (TZR.V) has entered into agreements with LG Energy North America LLC (LGENA) whereby LGENA will subscribe for 20,000,000 common shares of the company at a price of $1.50 per share for aggregate gross proceeds of $30 million and will invest an additional $60 million into a special purpose entity to provide supplemental project financing for new exploration and development opportunities in the future.
The company has also agreed to purchase a 10% interest in the SPV, valued at $6 million from LG for 4,000,000 common shares of the company at a deemed value of $1.50 each.
Dan Carriere, the company's chairman, commented: "We are extremely pleased with the opportunity to work together with LG to build Terrace Energy into a significant company. LG's decision to make their first foray into the acquisition and development of North American oil & gas interests through Terrace Energy clearly demonstrates the confidence they have placed in our projects, management and technical teams."
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