11/2/2010

TUSCANY ANNOUNCES UP TO $1.2 MILLION FLOW THROUGH SHARE FINANCING

TUSCANY ANNOUNCES UP TO $1.2 MILLION

FLOW THROUGH SHARE FINANCING

 

Tuscany Energy Ltd. ("Tuscany" or "the Company") is pleased to announce that the Board of Directors of the Company has approved a non-brokered private placement of up to 8 million common shares of Tuscany to be issued on a flow-through basis at a price of $0.15 per flow-through share.  A fee may be paid to registered representatives for the placement of shares subscribed for by subscribers who are not insiders of the Company.

 

Gross proceeds from the sale of the flow-through shares will be used to incur eligible exploration expenditures that will be renounced to subscribers as Canadian Exploration Expenses effective on or before December 31, 2010.  Tuscany plans to drill two additional horizontal wells on its Evesham property in late November 2010.

 

Closing of the private placement is expected to occur on or before November 15, 2010 and is subject to the approval of the TSX Venture Exchange.  Assuming the full amount of the private placement is sold, Tuscany would have approximately 62.8 million shares outstanding.  The actual number of flow-through shares sold pursuant to the private placement will not be known until closing, and such number may be less than the full amount offered for sale under the private placement.

 

Humboldt Capital Corporation has agreed to subscribe for up to $500,000, or 3.3 million shares if avialable.  Humboldt, together with R.W. Lamond, who owns 70% of the outstanding shares of Humboldt, own approximately 23.2 million shares of Tuscany (42%) and assuming the transaction is fully subscribed and Humboldt purchases 3.3 million shares, Humboldt and R.W. Lamond will own approximately 26.5 million shares (42%).

 

Common shares issuable pursuant to the offering will be subject to a four month holding period.

 

 FOR FURTHER INFORMATION, PLEASE CONTACT:

Robert W. Lamond, President & CEO

TUSCANY ENERGY LTD.

Telephone:  (403) 269-9889

Fax:  (403) 261-4072

TSX Venture:  TUS

 

John G.F. McLeod, Vice President & COO

TUSCANY ENERGY LTD.

Telephone:  (403) 264-2398

Fax:  (403) 261-4072

 

ADVISORY: This press release contains forward looking statements including statements regarding the use of proceeds, the closing of the offering, fees payable pursuant to the offering and the drilling of additional wells.  Although Tuscany believes that the expectations reflected in these forward looking statements are reasonable, undue reliance should not be placed on them because Tuscany can give no assurance that they will prove to be correct. Since forward looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties.

 

The forward looking statements contained in this press release are made as of the date hereof and Tuscany undertakes no obligations to update publicly or revise any forward looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

 

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 THIS RELEASE.



 
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