Contact Exploration Announces Closing of Private Placement of Flow-Through Common Shares
/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES/
CALGARY, July 18, 2012 /CNW/ - Contact Exploration Inc. ("Contact" or the "Company") (TSXV: CEX) is pleased to announce that it has closed its previously announced non-brokered private placement (the "Private Placement") of 20,000,000 common shares in the capital of the Company, issued on a "flow-through" basis pursuant to the Income Tax Act (Canada) ("Flow-Through Shares"). The Flow-Through Shares were issued to a private investor at a price of $0.15 per share for aggregate proceeds of $3,000,000.
Following the Private Placement, the private investor now holds 29,000,000 common shares of Contact, representing 13.52% of the issued and outstanding common shares of the Company.
Contact expects to use the proceeds of the Private Placement to incur eligible Canadian Exploration Expenses to fund its ongoing capital programs prior to December 31, 2013. These qualifying Canadian Exploration Expense expenditures will be renounced to the subscriber effective December 31, 2012.
The Flow-Through Shares issued pursuant to the Private Placement are subject to a four-month hold period from the closing date, which hold period expires on November 19, 2012.
About Contact Exploration Inc.
Contact Exploration Inc. is a public company which is currently pursuing a new core area in Alberta's "Deep Basin" targeting the Montney Formation. Historically, the Company 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 Deep Basin, Alberta, and to participate through overrides and carried interests in certain regional unconventional plays in Nova Scotia and Newfoundland.
ADVISORY ON FORWARD-LOOKING STATEMENTS: This press release contains certain forward-looking information and statements within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. In particular, but without limiting the forgoing, this press release contains statements concerning the anticipated use of the proceeds of the Private Placement.
Forward-looking statements or information are based on a number of material factors, expectations or assumptions of Contact which have been used to develop such statements and information but which may prove to be incorrect. 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 Canadian Exploration Expense expenditures.
The forward-looking statements contained in this press release are made as of the date hereof and Contact undertakes no obligations 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.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Contact Exploration Inc.