TORONTO, Feb. 17 /PRNewswire-FirstCall/ - Further to its news release dated January 28, 2011 Mountainview Energy Ltd. (TSXV: MVW) (the "Company") is pleased to announce that it has completed a Reverse Takeover involving the acquisition of 62 oil and gas leases, and all rights, title and interests thereto, covering 11,066 acres in Sheridan County, Montana and Williams and Divide Counties, North Dakota. In consideration, the Company paid $3,350,000 in cash and issued 18,611,110 common shares at a deemed price of $0.18 per share. The issued shares are subject to a Value Securities Escrow Agreement and will be released in instalments over a 3-year period. Shareholder approval of the Reverse Takeover was obtained by written consent dated February 11, 2011. In order to meet the public distribution requirements of the TSX Venture Exchange (the "Exchange") in connection with Exchange acceptance for the Reverse Takeover, on February 17, 2011 a significant shareholder of the Company sold 600,000 common shares at a price of $0.55 per share in cross trade to a significant number of new shareholders.
The Company is also pleased to announce that it has completed the non-brokered Private Placement in connection with the Reverse Takeover. The Private Placement consisted of 21,000,000 units (the "Units") at a price of $0.225 per Unit for gross proceeds of $4,725,000. Each Unit consists of one common share and one-quarter of one share purchase warrant, each whole warrant entitling the holder to purchase an additional common share of the Company at a price of $0.32 per share for a period of six months from the date of issuance of the Units. The common shares, warrants and any common shares issued upon exercise of the warrants are subject to a statutory and Exchange hold period that expires four months from the date of issuance of the Units pursuant to the Private Placement.
In consideration of arranging the Private Placement, the following finder's fees were paid: $70,104.07 and 311,573 finder's warrants to Canaccord Genuity Corp.; $48,001.50, 213,340 common shares and 426,680 finder's warrants to Jordan Capital Markets Inc.; and 663,320 common shares to Nicole Tonn. The finder's warrants have the same terms and conditions as the warrants noted above.
The common shares of the Company will be reinstated to trading at the open of trading on February 18, 2011.
Mountainview Energy Ltd. is a public oil and gas company listed on the Exchange, with a primary focus on the exploration, production and development of the Bakken and Three Forks Shale in the Williston Basin and the South Alberta Bakken Play.
ON BEHALF OF THE BOARD OF MOUNTAINVIEW ENERGY LTD.
"Patrick M. Montalban"
President & CEO
"Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."
SOURCE Mountainview Energy Ltd.