Terra Energy Corp. (TSX:TT) announced a non-brokered private placement of 3,125,000 units at CAD 0.40 per unit for gross proceeds of CAD 1,250,000 on February 21, 2014. Each unit consists of one common share and one common share purchase warrant. The shares will be issued on a flow-through basis. Each warrant will be exercisable into common share at a price of CAD 0.50 per share on or before June 30, 2015. Insiders of the company will be participating in the transaction for CAD 595,000. The securities issued will be subject to a four-month hold period. Certain arm's length eligible persons may receive a cash fee in connection with the transaction of up to 5% of the gross proceeds of the sale of the units. The closing of the transaction is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory approvals, including the approval of the Toronto Stock Exchange.

On February 25, 2014, the company announced that it has increased the size to CAD 2 million. The company will now issue 5,000,000 units. The closing of the transaction is expected to occur in one or more tranches with the first closing expected to occur on or about February 26, 2014. Insiders of the company will be participating in the transaction for CAD 710,000.

On February 27, 2014, the company announced that it has closed the first tranche of the transaction. The company has issued 1,755,000 units and 2,000,000 flow-through common shares for aggregate gross proceeds of CAD 1,502,000. The company paid a finder's fee of CAD 35,000 to certain arm's length eligible persons. The company expects to close the second tranche by March 22, 2014.