Montana Exploration Corp. announces Senior Warrants will not be re-priced and requests shareholder approval to amend conversion rate of Senior Indebtedness


CALGARY, March 11, 2013 /CNW/ - Montana Exploration Corp. ("Montana") announces that it has received notice from the TSX Venture Exchange (the "TSXV") that disinterested shareholder approval is required to re-price the conversion rate of $2.46 million of the principal amount owing by Montana under its senior debt ("Senior Debt") to Rioco Partners, Ltd. ("Rioco") from $0.32 to $0.25 per common share and that the re-pricing from $0.32 to $0.25 per common share of the 4,000,000 warrants (the "Senior Warrants") previously issued to Rioco Partners, Ltd. for extending the maturity of the loan will not be approved. The principal shareholder of Rioco Partners, Ltd. is James Collins, a director and a controlling shareholder of Montana.

The re-pricing of the conversion rate of the Senior Debt is intended to act as an inducement to Rioco to convert the Senior Debt into common shares. It is a condition of the proposed private placement to McIntyre Partners that the Senior Debt be converted into common shares.

The proposed re-pricing of the conversion rate to the Senior Debt and Senior Warrants were previously announced in the press release of the Montana dated January 31, 2013 and the information circular in respect to the special meeting of the shareholders of Montana to be held on March 14, 2013 (the "Shareholders' Meeting").

The reduction of the exercise price of the Senior Warrants was to be put before shareholders of Montana at the Shareholders Meeting. Instead, a motion will be put forward to the shareholders to amend the resolution to re-price the conversion rate of the Senior Debt.


Caution Regarding Forward Looking Information

Certain statements contained in this document constitute "forward-looking statements" and/or "forward-looking information" within the meaning of applicable securities laws (collectively referred to as forward-looking statements). Forward-looking information is often, but not always, identified by the use of words such as "anticipate", "believe", "expect", "plan", "intend", "forecast", "target", "project", "guidance", "may", "will", "should", "could", "estimate", "predict" "propose" or similar words suggesting future outcomes or language suggesting an outlook. Forward-looking statements in this press release include, but are not limited to completion of the Private Placement to McIntyre Partners, the re-pricing of the conversion rate of the Senior Debt and the holding of a special meeting of shareholders.

In addition, the proposed transactions are subject to Montana receiving regulatory approval from the Exchange and approval at a meeting of the holders of common shares and preferred shares of Montana.

Forward-looking statements and information contained in this press release are based on our current beliefs as well as assumptions made by, and information currently available to, us. Although we consider these assumptions to be reasonable based on information currently available to us, they may prove to be incorrect.

By their very nature, the forward-looking statements included in this press release involve inherent risks and uncertainties, both general and specific, and risks that predictions, forecasts, projections and other forward-looking statements will not be achieved. We caution readers not to place undue reliance on these statements as a number of important factors could cause the actual results to differ materially from the beliefs, plans, objectives, expectations and anticipations, estimates and intentions expressed in such forward-looking statements. These factors include, but are not limited to, the volatility of oil and gas prices; production and development costs and capital expenditures; the imprecision of reserve estimates and estimates of recoverable quantities of oil, natural gas and liquids; Montana's ability to replace and expand oil and gas reserves; environmental claims and liabilities; incorrect assessments of value when making acquisitions; increases in debt service charges; the loss of key personnel; the marketability of production; defaults by third party operators; unforeseen title defects; fluctuations in foreign currency and exchange rates; inadequate insurance coverage; compliance with environmental laws and regulations; changes in tax and royalty laws; Montana's ability to access external sources of debt and equity capital; and Montana's ability to obtain equipment in a timely manner to carry out development activities. Readers are cautioned that the foregoing list of factors that may affect future results is not exhaustive. When relying on our forward-looking statements to make decisions with respect to Montana, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Furthermore, the forward-looking statements contained in this press release are made as of the date of this document and we do not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement.

SOURCE: Montana Exploration Corp.

For further information:

Charles Selby, Chairman & CEO
Telephone: (403) 265 9091 (ext 247)
Fax: (403) 265 9021

Don Foulkes, President
Telephone: (403) 265 9091 (ext 248)
Fax: (403) 265 9021

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