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CALGARY, Sept. 17 /CNW/ - Bellamont Exploration Ltd. ("Bellamont" or the "Corporation") (TSXV: BMX.A, BMX.B) is pleased to announce that it has closed its previously announced equity offering. The over-allotment option was exercised in full by the underwriters and as a result, the Corporation issued a total of 11,500,000 Class A shares at a price of $0.62 per share for aggregate gross proceeds of $7,130,000. The syndicate of underwriters was led by FirstEnergy Capital Corp. and included GMP Securities L.P., RBC Capital Markets and National Bank Financial Inc.
The Corporation intends to use the net proceeds of the sale of the Class A shares to fund ongoing capital expenditures with a focus on Alberta oil projects to capitalize on recent drilling incentives introduced by the Alberta government, and for general corporate purposes which will be added to the Corporation's working capital. In particular, the Corporation will use the net proceeds for the recently announced $7.1 million increase to its capital expenditure budget. The increased capital expenditure budget will be directed towards Bellamont's oil discovery in the Grimshaw Area and emerging natural gas project in the Valhalla Area.
Bellamont's strategy is to build a low risk reserve, production and cash flow base through acquiring, developing and exploring primarily in the Peace River Arch area of Alberta. The Corporation has a strong, technically focused management team that internally generates and develops high quality, large resource based prospects. Bellamont trades on the TSX Venture Exchange under the symbols "BMX.A" and "BMX.B". The Corporation now has 56,280,781 Class A shares and 1,012,000 Class B shares outstanding.
Neither the 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.
This press release contains forward-looking statements. More particularly, this press release contains statements concerning the use of funds from the equity offering.
The forward-looking statements contained in this document are based on certain key expectations and assumptions made by the Corporation, including, with respect to the use of proceeds from the equity offering.
Although the Corporation believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Corporation 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. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the oil and gas industry in general (e.g., 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 estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), commodity price and exchange rate fluctuations. Certain of these risks are set out in more detail in the Corporation's Annual Information Form for the year ended December 31, 2008 which has been filed on SEDAR and can be accessed at www.sedar.com.
The forward-looking statements contained in this document are made as of the date hereof and the Corporation 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 BELLAMONT EXPLORATION LTD.
For further information: For further information: Bellamont Exploration Ltd., Suite 200, 1324 - 17th Avenue S.W., Calgary, Alberta, T2T 5S8, Telephone: (403) 802-6840, Fax: (403) 802-1315, Steve Moran, President and Chief Executive Officer, www.bellamont.com