Homeland Energy Files Amendment to Rights Offering Prospectus
TORONTO, CANADA -- (Marketwire) -- 07/02/10 -- Homeland Energy Group Ltd. (TSX: HEG) ('Homeland' or the 'Company') advises that, as announced in the press release of June 29, 2010, the Company's largest shareholder, GMR Energy Ltd. ('GMR') has advanced the necessary funds to make the June 30 payment to Nedbank. Homeland is of the view that these developments constitute a material change in its business. Consequently, under applicable securities laws if a material change occurs after filing a final prospectus but before the closing of the offering, an amendment to the final prospectus dated May 31, 2010 in respect of the Rights Offering (the 'Final Prospectus') must be filed. Homeland filed an Amendment to Prospectus June 30, 2010, a receipt for which was obtained today.
Under the rules of the Toronto Stock Exchange, the Company is not permitted to extend the expiry date of the rights granted pursuant to the Final Prospectus (see press release dated June 2, 2010). However, the Company wishes to ensure that all shareholders are able to make an informed decision regarding the exercise their rights. Any shareholders who have exercised their rights will be given the right to rescind their subscription for two (2) business days following receipt of the Amendment to Prospectus. It is anticipated that the Amendment to Prospectus will be mailed on July 6, 2010.
Homeland Energy Group Ltd. (TSX: HEG) is a coal producer with operations in the Witbank area of South Africa. The company also has a large-scale development property in South Africa and exploration interests in Southern Africa. Homeland will continue to seek out interests in additional coal projects in South Africa and neighbouring countries as well as internationally. Homeland is a shareholder in Homeland Uranium Inc., a Canadian uranium exploration company focused on projects in Niger and the United States. Homeland Energy Group Ltd. is currently traded on the Toronto Stock Exchange under the symbol 'HEG' with 302,115,756 common shares issued and outstanding. www.homelandenergygroup.com.
Contacts:
Homeland Energy Group Ltd.
Jeff Lowe
Acting Chief Financial Officer
+1 416 506-1979
info@homelandenergygroup.com
www.homelandenergygroup.com