The Company is pleased to announce a non-brokered private placement of up to 21,000,000 units at a price of $0.20 per unit for gross proceeds of up to $4,200,000. Each unit consists of one common share and one-quarter non-transferable warrant, each whole warrant entitling the holder to purchase one additional share of the Company at a price of $0.25 per share for a period of six months after closing.
The Company has entered into various Letters of Intent regarding the acquisition of the Stateline Project in Sheridan County, Montana and Williams and Divide Counties, North Dakota for aggregate consideration of $3,350,000 and 18,611,111 common shares of the Company. Net proceeds from the private placement will be used to fund the cash component for the Stateline Project, as well as to further the Company’s acquisition and development program and for general corporate purposes.
The Company has agreed to pay a finder’s fee of 8% in cash of the gross proceeds raised and that number of non-transferable warrants equal to 8% of the units sold. Each such finder’s warrant shall entitle the holder to purchase one additional share of the Company at a price of $0.20 per share for a period of twelve months after closing.
All securities issued in connection with the private placement will be subject to a minimum four-month hold period. This private placement is subject to acceptance by applicable securities regulatory authorities and the TSX Venture Exchange.
NOT FOR DISTRIBUTION TO THE UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws, or unless an exemption from such registration is available.
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.
Author’s Note: The “$500,00″ and the “25% of Market Capitalization” exemptions require that the “fair market value” of both the transaction and the consideration not exceed those amounts. In a private placement where securities are being issued at a discount or include a warrant, the “fair market value” of the transaction may not be equal to the consideration/issue price. If the “fair market value” is not readily determinable, teh independent directors should make that determination by resolution.Back to top