/THIS NEWS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES OR TO
ANY UNITED STATES NEWS SERVICES. ANY FAILURE TO COMPLY WITH THIS
RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW./
CALGARY, July 11, 2013 /CNW/ - Madalena Ventures Inc. (the "Company" or "Madalena") (TSX VENTURE: MVN) is pleased to announce that it has closed its
previously announced private placement financings for aggregate gross
proceeds of approximately $7.25 million through the issuance of:
11,765,000 common shares issued as CEE "flow-through shares" within the
meaning of the Income Tax Act (Canada) at a price of $0.34 per share for gross proceeds of $4.00
million (the "Brokered Private Placement") by way of "bought deal" private placement, pursuant to an
underwriting agreement between Dundee Securities Ltd.; and
(i) 200,000 common shares at a price of $0.31 per share; (ii) 4,780,000
common shares issued as CDE "flow-through shares" within the meaning of
the Income Tax Act (Canada) at a price of $0.32 per share; and (iii) 4,886,765 common
shares issued as CEE "flow-through shares" within the meaning of the Income Tax Act (Canada) at a price of $0.34 per share (collectively, the "Non-Brokered Private Placement") for gross proceeds of $3.25 million. and together with the Brokered
Private Placement, the "Private Placement").
The Company paid fees for certain subscriptions under the Private
Certain directors and officers of Madalena acquired an aggregate of
200,000 common shares and 400,000 CEE "flow-through" shares under the
Non-Brokered Private Placement.
The shares issued pursuant to the Private Placement are subject to a
four month hold period, which expires on November 12, 2013.
About Madalena - Domestic and International Assets
Madalena is an independent, Canadian-based, domestic and international
upstream oil and gas company whose main business activities include
exploration, development and production of crude oil, natural gas
liquids and natural gas.
Domestically, Madalena's core area of operations is located in the
Greater Paddle River area of west-central Alberta where the Company
holds approximately 200 gross (>150 net) sections of land (78% average
W.I.) encompassing light oil and liquids-rich gas resource plays.
Madalena's domestic focus is to exploit its large inventory of
horizontal development locations on its Ostracod oil, Notikewin/Wilrich
liquids-rich gas, and emerging Nordegg oil & liquids-rich gas resource
plays. Madalena also holds more than 100 net sections (100% W.I.) which
are prospective for the Duvernay shale.
Internationally, Madalena holds three large blocks within the prolific
Neuquén basin in Argentina where it is focused on the delineation of
vast shale and unconventional resources in the Vaca Muerta and Lower
Agrio shales, in addition to tight sand plays in the Mulichinco and
Quintuco. The Company is also developing a conventional oil play in the
Sierras Blancas formation. Madalena holds 135,000 net acres on the
Coiron Amargo (35,027 net acres), Curamhuele (50,400 net acres) and
Cortadera (49,600 net acres) blocks.
Madalena trades on the TSX Venture Exchange under the symbol MVN. Basic
corporate information, recent news releases and regularly updated
corporate presentations are available on the Company's website at www.madalena-ventures.com.
Forward Looking Information
The information in this news release contains certain forward-looking
statements. These statements relate to future events or our future
performance. All statements other than statements of historical fact
may be forward-looking statements. Forward-looking statements are
often, but not always, identified by the use of words such as "seek",
"anticipate", "plan", "continue", "estimate", "approximate", "expect",
"may", "will", "project", "predict", "potential", "targeting",
"intend", "could", "might", "should", "believe", "would" and similar
expressions. In particular, this news release contains forward-looking
statements pertaining to operational activities to be conducted by the
Company. These statements involve substantial known and unknown risks
and uncertainties, certain of which are beyond the Company's control,
including: the impact of general economic conditions; industry
conditions; changes in laws and regulations including the adoption of
new environmental laws and regulations and changes in how they are
interpreted and enforced; fluctuations in commodity prices and foreign
exchange and interest rates; stock market volatility and market
valuations; volatility in market prices for oil and natural gas;
liabilities inherent in oil and natural gas operations; uncertainties
associated with estimating oil and natural gas reserves; competition
for, among other things, capital, acquisitions, of reserves,
undeveloped lands and skilled personnel; incorrect assessments of the
value of acquisitions; changes in income tax laws or changes in tax
laws and incentive programs relating to the oil and gas industry;
geological, technical, drilling and processing problems and other
difficulties in producing petroleum reserves; and obtaining required
approvals of regulatory authorities. The Company's actual results,
performance or achievement could differ materially from those expressed
in, or implied by, such forward-looking statements and, accordingly, no
assurances can be given that any of the events anticipated by the
forward-looking statements will transpire or occur or, if any of them
do, what benefits the Company will derive from them. These statements
are subject to certain risks and uncertainties and may be based on
assumptions that could cause actual results to differ materially from
those anticipated or implied in the forward-looking statements. The
forward-looking statements in this news release are expressly qualified
in their entirety by this cautionary statement. Except as required by
law, the Company undertakes no obligation to publicly update or revise
any forward-looking statements. Investors are encouraged to review and
consider the additional risk factors set forth in the Company's Annual
Information Form, which is available on SEDAR at www.sedar.com.
This press release is not an offer of the securities for sale in the
United States. The securities have not been registered under the U.S.
Securities Act of 1933, as amended, and may not be offered or sold in
the United States absent registration or an exemption from
registration. 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 state 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 TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Madalena Ventures Inc.
For further information:
Kevin Shaw, P.Eng, MBA
President and Chief Executive Officer
Madalena Ventures Inc.
Phone: (403) 262-1901 (Ext. 230)
Thomas Love, CA
VP, Finance and Chief Financial Officer
Madalena Ventures Inc.
Phone: (403) 262-1901 (Ext. 227)