/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES/
CALGARY, July 16, 2012 /CNW/ - Contact Exploration Inc. ("Contact" or the "Company") (TSX-V: CEX) is pleased to announce that it intends to complete a
non-brokered private placement (the "Private Placement") of 20,000,000 common shares in the capital of the Company, to be
issued on a "flow-through" basis pursuant to the Income Tax Act (Canada) ("Flow-Through Shares"). The Flow-Through Shares will be issued to a private investor at a
price of $0.15 per share.
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 to be issued pursuant to the Private Placement
will be subject to a four-month hold period from the closing date.
The Private Placement is subject to approval from the TSX Venture
About Contact Exploration Inc.
Contact Exploration Inc. is a public company which 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 to participate through overrides and carried interests in certain
regional unconventional plays in Nova Scotia and Newfoundland. In
addition to the Atlantic Canadian properties, Contact is pursuing a new
core area in Alberta's "Deep Basin" targeting the Montney Formation.
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 closing of
the Private Placement and the anticipated use of the proceeds of the
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 closing of the
Private Placement could be delayed if Contact is not able to obtain the
necessary regulatory and stock exchange approvals on the timelines it
has planned. The Private Placement will not be completed at all if
these approvals are not obtained or some other condition to the closing
is not satisfied. Accordingly, there is a risk that the Private
Placement will not be completed within the anticipated time or at all.
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.
For further information:
President and CEO
Contact Exploration Inc.
Phone: (403) 771-1091
Fax: (403) 695-3915