Offering with Wolseley Ventures sells 17.5 million units at C$0.20
By Devika Patel
Knoxville, Tenn., Jan. 31 - Montana Exploration Corp. said it will conduct a C$3.5 million private placement of units with Wolseley Ventures Ltd.
The company will sell 17.5 million units of one common share and one warrant at C$0.20 per unit.
Each warrant will be exercisable at C$0.25 for one year. The strike price reflects a 4.17% premium to the Jan. 30 closing share price of C$0.24.
"The price of the private placement reflects the high cost of exploration capital in a challenging market environment," chairman and chief executive officer Charles Selby said in a press release. "However, the financing contemplates staged investments by the investor at successively higher prices."
"This financing is an important element in Montana's total financing plan," Selby added. "Our farm-in partner has agreed to carry us through the first 25 square miles of our 3D program and to pay the first $1 million of an initial C$1.5 million drilling program where initial Shaunavon wells are expected to cost approximately C$500,000. The investor will have the option of investing up to an additional approximately C$4.4 million through the exercise of warrants, which would fund Montana's remaining Shaunavon program, if exercised. An additional approximately C$4 million has been designated by the investor to pursue a new acquisition opportunity."
The oil and gas producer is based in Calgary, Alta.
| Issuer: | Montana Exploration Corp.
|
| Issue: | Units of one common share and one warrant
|
| Amount: | C$3.5 million
|
| Units: | 17.5 million
|
| Price: | C$0.20
|
| Warrants: | One warrant per unit
|
| Warrant expiration: | One year
|
| Warrant strike price: | C$0.25
|
| Investor: | Wolseley Ventures Ltd.
|
| Announcement date: | Jan. 31
|
| Stock symbol: | TSX Venture: MTZ
|
| Stock price: | C$0.24 at close Jan. 30
|
| Market capitalization: | C$5.05 million
|
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