Vancouver, B.C., January 5, 2011 (Investorideas.com energy stocks newswire) � Aroway Minerals Inc. (TSX-V:ARW; PINK:ARWJF) (www.arowayenergy.com) (the "Company") is pleased to announce that further to its news release of November 29, 2010, that it has closed its non-brokered private placement of 8,375,750 flow-through units (the "FT Units") at a price of $0.40 per FT Unit and 4,638,056 non flow-through units (the "Units") at a price of $0.36 per Unit (collectively, the "Offerings"), for aggregate gross proceeds of $5,000,000. Each FT Unit consists of one common share in the capital of the Company which will be designated as a flow through share for the purposes of the Income Tax Act (Canada) and one half share purchase warrant, each full warrant entitling the holder thereof to purchase one additional common share of the Company at a price of $0.50 per share until December 22, 2011. Each Unit consists of one common share of the Company and one half share purchase warrant, each full warrant entitling the holder thereof to purchase, for a period of 12 months from the date of issuance, one additional common share of the Company at a price of $0.45 per share.
In connection with the closing, the Company paid certain finders (each a "Finder") a cash commission equal to 8% of the proceeds of the sale of FT Units and Units by such Finder (being $399,200 in total) and issued finder's compensation warrants (the "Finder's Warrants") equal to 8% of the number of FT Units and Units sold by such Finder (being 1,034,883 Finder's Warrants in total). Each Finder's Warrant entitles such Finder to purchase a Share (a "Finder's Warrant Share") at an exercise price of $0.50 per Finder's Warrant Share until December 22, 2011.
All securities issued in the closing of the Offerings will be subject to a hold period which expires April 23, 2011. Proceeds of the offering will be used to fund the Company's drilling commitments with respect to its rolling option farmout agreement with its joint venture partner as previously announced on November 22, 2010.
Chris Cooper, the President of Aroway commented: "This is an exciting time for the Company as it is a significant step towards taking advantage of the opportunities available to us through our joint venture partner. This capital raise will allow the Company to fast track its drilling program and build on its current production."
The Company also announces it has granted 450,000 stock options at a price of $0.50 to a director and consultants to the Company.
About Aroway Minerals Inc.
Aroway Minerals Inc. is a Western Canadian junior oil and gas production and exploration company focused on participating in "non-operated" Peace River Arch oil and gas exploration prospects, through a joint venture partnership.
Aroway is currently participating in exploration wells which are programmed to a total depth into the Leduc formation in the Peace River Arch area of Alberta. The Company will pay 75% of all costs to earn 50% of all revenues in the exploration program. The first well has been drilled and produces approximately 100 boe/day of oil, gas liquids and gas net to Aroway.
ON BEHALF OF AROWAY MINERALS INC.
"Chris Cooper"
President
Neither 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.
Contact:
Aroway Minerals Inc.:
Judy-Ann Pottinger
Telephone: (604) 617-5290
Fax: (604) 909-2679
E-mail: jpottinger@arowayenergy.com
Investor Cubed Inc.:
Alan Huycke
Telephone: (647) 258-3311, (888) 258-3323
Fax: (416) 363-7977
E-mail: ahuycke@investor3.ca
Disclosure: ARW is a paid advertising client on Investorideas.com and our energy, natural gas, and oil and gas portals.
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