American Sands Energy Corp. Raises $3.7 Million in Oversubscribed Equity Offering, Eliminates All Company Debt
SALT LAKE CITY, March 24, 2014 (GLOBE NEWSWIRE) -- American Sands Energy Corp. (OTCBB:AMSE) ("AMSE" or the "Company"), an oil sands exploration and development company operating in Utah, announced today it has raised approximately $3.7 million from the sale of preferred stock in an oversubscribed offering. The Company also said that investors have converted $1.75 million worth of convertible notes and interest into preferred equity. Furthermore, the remaining notes outstanding have been paid back to investors, eliminating all debt from the balance sheet.
"We are pleased to announce the successful close of our financing and the repayment of all outstanding notes. As a direct result of this financing, the Company has finished test drilling at its Sunnyside site location, finalized the associated environmental studies and filed our mining permit," said Will Gibbs, Chairman and CEO, noting an initial target of a $2 million raise.
Daniel Carlson, the Company's Chief Financial Officer, said, "We appreciate the confidence in American Sands demonstrated by investors oversubscribing our equity raise, and the commitment shown by our debt holders with their conversion into equity. With the close of the financing, the Company is fully funded through the anticipated issuance of the operating permit and is well positioned for next-level financing of our project."
About American Sands Energy Corp.
American Sands Energy Corp. is a development stage Delaware company with primary operations in Utah. The Company has acquired rights to oil sand ore covering approximately 1,800 private acres of prime oil sand deposits in the Sunnyside area of Utah. The Company has an extraction and recovery system using a licensed proprietary solvent that separates oil and other hydrocarbons from sand, dirt and other substances without creating tailing ponds and other environmental hazards. For more information, visit www.americansandsenergy.com.
Forward Looking Statements
This release contains forward-looking statements regarding AMSE's future plans and expected performance based on assumptions the Company believes to be reasonable. A number of risks and uncertainties could cause actual results to differ materially from these statements, including, without limitation, the success rate of business development efforts, exploration efforts and the timeliness of development activities, the ability to place the project into full production; the ability to secure all necessary mining permits in a timely manner, fluctuations in energy prices, confirmation of estimated resources, and other risk factors described from time to time in the Company's reports filed with the SEC. In addition, the Company operates in an industry sector where securities values are highly volatile and may be influenced by economic and other factors beyond the Company's control. American Sands Energy Corp. undertakes no obligation to publicly update these forward-looking statements, whether as a result of new information, future events or otherwise.
Contact
Phil Allen 303.898.0625
pallen@americansandsenergy.com