PE-backed Long Run Exploration to lower debt with $200 mln investment

Calgary-based Long Run Exploration Ltd has agreed to a private placement of its common shares to Maple Marathon Investments, an affiliate of Hong Kong's MIE Holdings Corp. The transaction is expected to generate gross proceeds of about $200 million. As a result, Maple Marathon will hold about 43.9 percent of the issued and outstanding common shares of Long Run, an intermediate oil and natural gas business. Canadian private equity firm Sprott Resource Corp, which currently holds an 11.9 percent equity interest in the company, said the proceeds of the private placement will be used to reduce debt and improve its capital structure.

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