Secondary links

Compliance Energy to raise $3,500,150 from private placements

News Release, Compliance Energy Corporation, March 10, 2011

Vancouver - Compliance Energy Corporation (“Compliance” or the “Company”) is pleased to report that it plans to raise $3,500,150 via the following private placements:

 

Private Placement of Flow-Through Units

The Company plans a non-brokered private placement to raise gross proceeds of $1,250,000 (the “Flow-Through Financing”). The Company plans to issue 3,125,000 units (each a “Unit”) at a price of $0.40 per Unit. Each Unit will consist of one common share of the Company, intended to be qualify as a “flow-through share” under the Income Tax Act (Canada), and one-half of one non-flow-through common share purchase warrant, with each whole warrant having a term of 24 months and an exercise price of $0.60 in the first 12 months and $0.75 in second 12 months. The proceeds from the Flow-Through Financing will be utilized to fund the Company’s base metal exploration program on Vancouver Island.

In connection with the Flow-Through Financing, the Company will pay a cash finder’s fee equal to 6% of the gross proceeds raised in the Flow-Through Financing, and issue finder’s options (“Finder’s Options”), exercisable to acquire such number of units (“Finder’s Units”) as is equal to 7% of the number of Units issued in the Flow-Through Financing. The Finder’s Options have an exercise price of $0.40 per Finder’s Unit and each Finder’s Unit has the same attributes as the Units issued in the Flow-Through Financing, except that the shares partly-comprising the Finder’s Units will not be issued on a flow-through basis.

Private Placements of Common Shares

The Company also plans a non-brokered private placement of 6,429,000 common shares (the “Non-Flow-Through Financing”, collectively with the Flow-Through Financing, the “Financings”). The Non-Flow-Through Financing is non-brokered and the common shares issued in connection therewith are to be issued at a price of $0.35 per common share for aggregate proceeds of $2,250,150. The proceeds from the Non-Flow-Through Financing will be utilized to fund the continued development of Raven Underground Coal Project and for general working capital purposes.

A 7% cash finder’s fee and 7% Finder’s Options (as described above) will be paid on a portion of the Non-Flow-Through Financing.

The Company expects to close the Non-Flow-Through Financing on March 11, 2011 and the Flow-Through Financing on March 14, 2011.

About Compliance Energy Corporation

Compliance Energy Corporation is a mining exploration and development company. Our primary holding is our interest in over 75,000 acres of coal and mineral rights on Vancouver Island, British Columbia, where we are focused on developing the Raven Underground Coal Project of which we hold a 60% interest. The remaining 40% is owned by I-Comox Coal Inc., a subsidiary of Itochu Corporation of Japan and by LG International Investments (Canada) Limited, a subsidiary of LG International Corp. of Korea.

The Company also owns a number of exploration properties on Vancouver Island, BC which are 100% owned by the Company, some subject to certain royalty requirements. Our shares trade on the TSX Venture Exchange under the symbol CEC and investor information is available on our web site at www.complianceenergy.com.

On behalf of the Board of
COMPLIANCE ENERGY CORPORATION
Jim Defer
Chief Financial Officer

Contact Greg Werbowski, Investor Relations at 604-689-0489 ext 244 for further information.

Click here to read the complete news release