Advanced Explorations Inc. (TSXV:AXI) announced a private placement for gross proceeds of CAD 20,000,000 from a returning investor, Xinxing Ductile Iron Pipes Co.,Ltd on August 21, 2012. The transaction will take place in three tranches. The company will issue convertible debentures under the first tranche for gross proceeds of CAD 5,000,000. The debentures have a maturity period expiring after two years and carry no interest. The debentures issued will be convertible either into the common shares of the company up to a maximum stake of 19% in the company or into shares of the Tuktu DSO joint venture relative to the minimum limit specified. The conversion price will be the greater of either a 10% discount of the weighted average price of shares of the company of the ten days before and after Xinxing Ductile Iron Pipes Co.,Ltd inform the company to convert their shares, or the amount equal to CAD 0.25 per share. The company will raise CAD 5,000,000 and CAD 10,000,000 in the other two tranches.

On September 4, 2012, Advanced Explorations Inc. closed the transaction. The company received CAD 5,000,000 in the transaction. The convertible debentures will mature on November 2, 2014. All securities issued will be subject to a hold period expiring four months and one day after the date of issuance of the debenture.