/NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S.
CALGARY, July 30, 2012 /CNW/ - Butte Energy Inc. ("Butte" or the
"Company") announces that further to its press releases dated May 16,
2012 and June 29, 2012, it has successfully completed its non-brokered
private placement for 9,436,908 common shares in the capital of the
Company ("Common Shares") at an issue price of $0.25 per share for
aggregate gross proceeds of $2,359,227 (the "Private Placement").
The Common Shares issued pursuant to the Private Placement offering are
subject to a hold period under applicable securities laws until
December 1, 2012.
The net proceeds of this offering will be used in the Company's on-going
exploration and development activities in Central Alberta including the
Company's farm-out obligations and for working capital.
Mr. Victor Redekop, a director of the Company, owned, or exercised
control or direction over, directly or indirectly, an aggregate of
18,703,912 Common Shares representing 54.5% of the Common Shares
outstanding prior to the completion of the Private Placement. As a
result of the Private Placement, Mr. Redekop beneficially owns, or
exercises control or direction over, directly or indirectly, an
aggregate of 25,703,912 Common Shares, representing approximately 58.8%
of the issued and outstanding Common Shares. As a result of his
ownership, the Private Placement constitutes a "related party
transaction" pursuant to Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). MI 61-101 provides a number of circumstances in which a
transaction between an issuer and a related party may be subject to
valuation and minority approval requirements. An exemption from the
formal valuation requirements is available as the securities of the
Company are not listed or quoted on any of the markets specified in
subsection 5.5(b) of MI 61-101 and an exemption from minority approval
requirements is available as the fair market value of the related party
transaction is less than $2.5 million. Consequently, the Private
Placement is not subject to the valuation and minority approval
requirements of MI 61-101. The board of directors of the Company
approved the Private Placement. The Company did not file a material
change report more than 21 days before the expected closing of the
Private Placement as details of the Private Placement were not settled
until shortly before the closing of the Private Placement.
This news release contains "forward-looking statements" within the
meaning of applicable securities laws relating to the use of proceeds
from the Private Placement. Readers are cautioned not to place undue
reliance on forward-looking statements. Actual results and developments
may differ materially from those contemplated by these statements
depending on, among other things, the risks that regulatory approval
will not be obtained in a timely manner or at all. The statements in
this news release are made as of the date of this release. Except as
required by law, the Company expressly disclaims any intention or
obligation to update or revise any forward-looking statements whether
as a result of new information, future events or otherwise.
Neither the TSX Venture Exchange, Inc. nor its Regulation Service
Provider (as that term is defined under the policies of the TSX Venture
Exchange) has in any way passed upon the merits of the Proposed
Acquisition and associated transactions and has neither approved nor
disapproved of the contents of this press release.
Not for distribution to U.S. Newswire Services or for dissemination in
the United States. Any failure to comply with this restriction may
constitute a violation of U.S. Securities laws.
SOURCE: Butte Energy Inc.
For further information:
Butte Energy Inc.
Victor Redekop, Chairman
Tel: (403) 541-5310