MCALLEN, TX, June 13, 2013 /CNW/ - James W. Collins of 900 East Lakeview Drive McAllen, Texas (the "Offeror") acquired beneficial ownership and control of 5,662,984 common shares ("Common Shares") of Montana Exploration Corp. ("Montana") pursuant to the exercise of its rights and standby commitment under Montana's rights offering which closed June 4, 2013 (the "Rights Offering") for aggregate gross proceeds of $1,132,596.80. The Common Shares were acquired by James Collins as well as by entities over which James Collins exercises control or direction including ANG Partners, Ltd. ("ANG") and Rioco Partners, Ltd. As compensation for providing the standby commitment under the Rights Offering, Collins, through ANG., acquired 625,000 warrants (the "Standby Warrants"), each warrant entitling ANG to purchase one Common Share at an exercise price of $0.25 per Common Share with a term expiring six months from closing of the Rights Offering.
Immediately following closing of the Rights Offering, the Offeror had beneficial ownership of, and control and direction over, directly or indirectly, approximately 43.6% of the issued and outstanding Common Shares on an undiluted basis and approximately 52.2% on a fully diluted basis, assuming the full exercise of convertible securities held by the Offeror.
The acquisition of securities in Montana by the Offeror is for investment purposes. The Offeror may from time to time dispose of, or acquire, additional securities of Montana. The Common Shares were sold to the Offeror in reliance upon the rights offering exemption in Section 2.1 of National Instrument 45-106 Prospectus and Registration Exemptions ("NI 45-106") and the Standby Warrants were issued to Collins in reliance upon the employee, executive officer, director and consultant exemption in Section 2.24 of NI 45-106.
This press release is issued pursuant to National Instrument 62-103 - The Early Warning System and Related Take-Over Bid and Insider Reporting Issues, which also requires a report to be filed with regulatory authorities in each of the jurisdictions in which Montana is a reporting issuer containing information with respect to the foregoing matters (the "Early Warning Report"). A copy of the Early Warning Report will appear with Montana's documents on the System for Electronic Document Analysis and Retrieval and may also be obtained by contacting Maggie Thompson on behalf of the Offeror at (956) 686-5491.
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SOURCE: James W. Collins
For further information:
A copy of the Early Warning Report will appear with Montana's documents on the System for Electronic Document Analysis and Retrieval and may also be obtained by contacting Maggie Thompson on behalf of the Offeror at (956) 686-5491.