Iona Energy Announces $20 Million Private Placement Financing

Fri Jan 18, 2013 6:39am EST

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Iona Energy Inc.

January 18, 2013 - 06:39:22 AM

Iona Energy Announces $20 Million Private Placement Financing

CALGARY, ALBERTA--(Marketwire - Jan. 18, 2013) - 


Iona Energy Inc. ("Iona" or the "Company") (TSX VENTURE:INA), is pleased to
announce that it has engaged Casimir Capital Ltd. ("Casimir") to act as lead
underwriter on a financing for the Company to raise $20,000,200 through the
completion of a private placement on a "bought deal" basis (the "Offering").
The Offering will be in the form of common shares of the Company (the
"Shares") at a price of $0.55 per Share. The Company will also grant the
underwriters an option exercisable at any time prior to closing to increase
the size of the Offering by an additional 15%, which would result in
additional gross proceeds to the Company of $3,000,030. 

The Offering is subject to the approval of the TSX Venture Exchange. Pursuant
to applicable securities laws, all securities issued pursuant to the Offering
will be subject to a hold period of four months following the closing of the
Offering. The Offering is expected to close on or about January 31, 2013 in
conjunction with the anticipated closings of Iona's previously announced
Huntington acquisition, senior secured reserve-based lending facility (the
"RBL"), and second lien secured loan notes ("Second Notes").

Iona had anticipated funding the Huntington acquisition and its existing
property developments through the RBL, Second Notes, and working capital;
however, in the course of finalizing lender credit approvals the lenders
requested a hold back of several months of projected production revenues to
build and maintain a lenders' reserve account to mitigate against perceived
potential production fluctuations associated with start-up of production from
the Huntington field. This required Iona to raise additional capital to offset
the lender's holdback in order to maintain continued liquidity to achieve its
development goals.

About Iona Energy

Iona is an oil and gas exploration, development and production company focused
on oil and gas development and exploration in the United Kingdom's North Sea.

The securities of Iona being offered have not been, nor will be, registered
under the United States Securities Act of 1933, as amended, and may not be
offered or sold within the United States or to, or for the account or benefit
of, U.S. persons absent U.S. registration or an applicable exemption from U.S.
registration requirements. This release does not constitute an offer for sale
of securities in the United States.

Forward-looking Statements

Some of the statements in this announcement are forward-looking, including
statements regarding the proposed terms of the Offering and anticipated
closing dates of various transactions of Iona. Forward-looking statements
include statements regarding the intent, belief and current expectations of
Iona Energy Inc. or its officers with respect to various matters, including
the Offering. When used in this announcement, the words "expects," "believes,"
"anticipate," "plans," "may," "will," "should", "scheduled", "targeted",
"estimated" and similar expressions, and the negatives thereof, are intended
to identify forward-looking statements. Such statements are not promises or
guarantees, are based on various assumptions by Iona's management and are
subject to risks and uncertainties that could cause actual outcome to differ
materially from those suggested by any such statements, including without
limitation, the risk that the transactions described herein do not close
concurrently, are delayed for any reason, or are not completed. These
forward-looking statements speak only as of the date of this announcement.
Iona Energy Inc. expressly disclaims any obligation or undertaking to release
publicly any updates or revisions to any forward-looking statement contained
herein to reflect any change in its expectations with regard thereto or any
change in events, conditions or circumstances on which any forward-looking
statement is based except as required by applicable securities laws.

Iona Energy Inc.
Neill A. Carson
Chief Executive Officer
+011 (44) 1224 228400

Iona Energy Inc.
Brad G. Gunn
Chief Financial Officer
(403) 775-7442


Neither TSX Venture Exchange nor its Regulation Service Provider (as that term
is defined in the policies of the TSX Venture Exchange) accepts responsibility
for the adequacy or accuracy of this release.