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CALGARY, Oct. 15, 2013 /CNW/ - First Mountain Exploration Ltd. ("First Mountain" or the "Company") (TSX Venture: FMX) announces that it has closed the second and final
tranche of a non-brokered private placement (the "Offering") previously announced on August 29, 2013. First Mountain issued
4,800,000 common shares ("Common Shares") in the capital of the Company at a price of $0.08 per Common Share
and 2,250,000 common shares of the Company issued on a flow-through
basis pursuant to the Income Tax Act (Canada) (the "Flow-Through Shares") at a price of $0.10 per Flow-Through Share for aggregate gross
proceeds of $609,000.
In connection with the Offering, First Mountain paid a finder's fee to
certain eligible persons ("Eligible Persons") in accordance with applicable securities laws, consisting of $42,000 in cash. The Company also issued 485,000 agent's options (the "Agent's Options") to Eligible Persons. Each Agent's Option is exercisable to purchase
one Common Share at a price of $0.12 per Common Share until October 15,
Each of the Common Shares, Flow-Through Shares and Agent's Options are
subject to resale restrictions imposed by applicable securities laws
and the policies of the TSX Venture Exchange until February 16, 2014.
The net proceeds of the Offering shall be primarily used for the
Company's exploration and development program, including the
development drilling on certain oil and gas producing assets in the
Atlee Buffalo area of Alberta.
Neither the TSX Venture nor its Regulation Service Provider (as that
term is defined in the policies of the TSX Venture) accepts
responsibility for the adequacy or accuracy of this release.
The securities offered have not been and will not be 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 applicable exemption
from the registration requirements. This press release does not
constitute an offer to sell or the solicitation of any offer to buy nor
will there be any sale of these securities in any province, state or
jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the securities
laws of any such province, state or jurisdiction.
A Note regarding Forward Looking Information
This press release contains forward-looking statements and
forward-looking information within the meaning of applicable securities
laws. The use of any of the words "will", "expects", "believe",
"plans", "potential" and similar expressions are intended to identify
forward-looking statements or information. More particularly and
without limitation, this press release contains forward looking
statements and information concerning the proposed use of the proceeds of the Offering by the Company.
Although First Mountain believes that the expectations and assumptions
on which such forward looking statements and information are based are
reasonable, undue reliance should not be placed on the forward-looking
statements and information because First Mountain can give no assurance
that they will prove to be correct.
Since forward-looking statements and information address future events
and conditions, by their very nature they involve inherent risks and
uncertainties. Actual results could differ materially from those
currently anticipated due to a number of factors and risks. These
include, but are not limited to, the risks associated with the oil and
gas industry in general such as operational risks in development,
exploration and production; delays or changes in plans with respect to
exploration or development projects or capital expenditures; the
uncertainty of reserve and resource estimates; the uncertainty of
estimates and projections relating to reserves, resources, production,
costs and expenses; health, safety and environmental risks; commodity
price and exchange rate fluctuations; marketing and transportation;
loss of markets; environmental risks; competition; incorrect assessment
of the value of acquisitions; failure to realize the anticipated
benefits of acquisitions; ability to access sufficient capital from
internal and external sources; changes in legislation, including but
not limited to tax laws, royalties and environmental regulations,
actual production from the acquired assets may be greater or less than
estimates; failure to obtain the necessary regulatory approval, stock
exchange and other regulatory approvals on the timelines planned.
Management has included the above summary of assumptions and risks
related to forward looking information provided in this press release
in order to provide security holders with a more complete perspective
on First Mountain's future operations and such information may not be
appropriate for other purposes.
The forward-looking statements and information contained in this press
release are made as of the date hereof and First Mountain undertakes no
obligation 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.
SOURCE: First Mountain Exploration Ltd.
For further information:
President, Chief Executive Officer and Director
First Mountain Exploration Ltd.
Telephone: (403) 453-2266