CALGARY, Alberta, Jan. 12 /PRNewswire-FirstCall/ --FEC Resources Inc. ("FEC" or the "Company") (OTC Bulletin Board: FECOF) is delighted to announce it has today completed a US$2.5m equity placement of 5,000,000 shares at a price of US$0.50 (fifty cents) per share representing a significant premium to the market price of FEC. The stock has been placed to Philex Mining Corporation ("Philex"), the Company's largest shareholder.
Philex has advised the Company that the price it has paid does not reflect Philex's appreciation of the current value of FEC as Philex does not have sufficient information to reasonably determine what the true value of FEC is. Philex said that the financing was done to provide financial support to the Company at a minimum dilution to all other existing shareholders.
The Company is also not aware of any reason for the large premium to the market price.
The proceeds of the offer will be used as may be appropriate for a mixture of purposes, such as for the Company's 2010 budget and for other projects that may come up. The repayment of the Company's loan with Philex will also be deferred for 12 months from the date of the offer.
Barry Stansfield, Chairman quoted:
"We are delighted to have been able to significantly strengthen our balance sheet on such commercially acceptable terms. We anticipate this placement will provide the security required by the Company to go forward and ensure capital commitments can be met enabling the Corporation to deliver value to our long supporting shareholders. We look forward to many exciting developments in 2010"
For and on behalf of the Company:
FEC Resources Inc.
This release contains "forward looking statements" as per Section 21E of the US Securities and Exchange Act of 1934, as amended. Although the Company believes that the expectations reflected in such forward looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Management is currently reviewing many options and there is no assurance that they will not make decisions other than those now contemplated. The Company is subject to political risks and operational risks identified in documents filed with the Securities and Exchange Commission, including changing and depressed oil prices, unsuccessful drilling results, change of government and political unrest in its main area of operations
Contact: Riaz Sumar, +1-403-290-1676, info@FECResources.com, for FEC Resources Inc.
SOURCE FEC Resources Inc.