WesternZagros Secures Strategic Financing from Crest Energy

WesternZagros Resources Ltd. (“WesternZagros”) secured a $123 million strategic financing from Crest Energy International LLC (“Crest”). WesternZagros received $63.75 million from the issuance of 51,000,000 Common Shares to Crest and Crest advanced US$57.5 million to WesternZagros under a senior secured loan agreement. RBC Capital Markets (“RBC”) acted as financial advisor. Following this, WesternZagros completed an incremental private placement of 9,147,271 Common Shares to The Richard Chandler Corporation and 2,284,151 Common Shares to Crest for gross proceeds of $14.3 million, which private placement was completed through a syndicate of agents led by RBC.

WesternZagros is an international natural resources company which holds a 40 per cent working interest in two Production Sharing Contracts with the Kurdistan Regional Government in the Kurdistan Region of Iraq.

Crest is an affiliate of Crest Investment Company, a Houston, Texas-based principal investment company specializing in energy investments, which include projects in the Middle East.
The Richard Chandler Corporation is based in Singapore and builds and operates businesses in energy and environment, consumer, financial services, and healthcare, with operations in Asia and the Pacific, Africa, the Americas, Europe, and the Middle East.

WesternZagros was represented by Norton Rose Canada LLP (now Norton Rose Fulbright) with a team led by Lianne Tysowski that included Geoffrey Gilbert, Peter Allegretto and Zahra Allidina (securities); Rick Borden and Marlow Gereluk (banking) and Darren Hueppelsheuser (tax).

Crest was represented by Burstall Winger LLP with a team that included Doug McCartney and Adrian Harvey (securities) and Sally Steeves (banking).

RBC and the syndicate of agents were represented by Blake, Cassels & Graydon LLP with a team that included John Eamon, Jeff MacKenzie and Alison Desipio.