TORONTO, Feb. 17 /CNW/ - 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.
For further information:
MOUNTAINVIEW ENERGY LTD.
PO Box 200
Cut Bank, MT 59427
Phone: (406) 873-2235 Fax: (406) 873-2835