Contact Announces Closing of Private Placement and Appointment of New Director
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CALGARY, April 25, 2012 /PRNewswire/ - Contact Exploration Inc. ("Contact" or the "Company") (TSXV: CEX) is pleased to announce that it has closed its previously announced brokered private placement (the "Private Placement") pursuant to which it has issued 10,254,000 common shares of the Company issued on a "flow-through" basis pursuant to the provisions of the Income Tax Act (Canada) (the "Flow-Through Shares") at an issue price of $0.13 per Flow-Through Share for aggregate gross proceeds of $1,333,020 (the "Private Placement"). MGI acted as agent to the Company and was paid a cash commission equal to 7% of the aggregate gross proceeds raised by the Company.
The Flow-Through Shares issued pursuant to the Private Placement are subject to a four-month hold period from the date hereof, which expires on August 26, 2012.
Contact expects to use the proceeds of the Private Placement to incur eligible Canadian Exploration Expenses to fund its ongoing capital programs. These qualifying Canadian Exploration Expense expenditures will be renounced to subscribers effective December 31, 2012.
Contact is also pleased to announce that Mr. Robert B. Hodgins CA has joined Contact's Board of Directors. Mr. Hodgins has been an independent businessman since November 2004, having served as the Chief Financial Officer of Pengrowth Energy Trust from 2002 to 2004. Prior to that, Mr. Hodgins held the position of Vice President and Treasurer of Canadian Pacific Limited from 1998 to 2002 and was Chief Financial Officer of TransCanada Pipelines Limited from 1993 to 1998. Mr. Hodgins is currently a director, and Audit Committee Chairman, of a number of companies in the energy business, including AltaGas Ltd., Enerplus Corporation, Fairborne Energy Ltd. and MEG Energy Corp.
"Mr. Hodgins brings a wealth of business and corporate governance skills to Contact and we are extremely pleased to welcome him to our Board", said Steve Harding, President and CEO of Contact.
About Contact Exploration Inc.
Contact Exploration Inc. is a public company which has been focused on Canadian East Coast onshore oil and gas exploration and development. Our philosophy is to operate exploration and development in our core areas of Stoney Creek, Hillsborough and Edgett's Landing, New Brunswick and to participate through overrides and carried interests in certain regional unconventional plays in Nova Scotia and Newfoundland. In addition to the Atlantic Canadian properties, Contact is pursuing a new core area in Alberta's "Deep Basin" targeting the Montney Formation.
Forward Looking Information
This press release contains forward looking statements. More particularly, this press release contains statements concerning the anticipated use of the proceeds of the Private Placement. Although Contact believes that the expectations reflected in these forward looking statements are reasonable, undue reliance should not be placed on them because Contact can give no assurance that they will prove to be correct. Since forward looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. The intended use of the proceeds of the Private Placement by Contact might change if the board of directors of the Company determines that it would be in the best interests of Contact to deploy the proceeds for some other expenditures.
The forward looking statements contained in this press release are made as of the date hereof and Contact undertakes no obligation to update publicly or revise any forward looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
The Flow-Through Shares offered have not been and will not be registered under the United States Securities Act of 1933, as amended and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirement. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Contact Exploration Inc.