CALGARY, Dec. 13, 2017 /CNW/ - Montana Exploration Corp. ("Montana" or the "Company") (TSXV:MTZ) has entered into an unsecured loan agreement (the "Loan Agreement") with one of its creditors, Rioco Partners, Ltd, which is controlled by Montana's largest shareholder and director James Collins. The Company has received $372,000 USD to use for general corporate purposes. A 1% origination fee is payable on the loan, or $3,720 USD, bringing the loan total to $375,720. Pursuant to the Loan Agreement, the Company intends to issue bonus shares having an aggregate value of 20% of the loan total, or $75,144 USD to Mr. Collins, subject to the approval of the TSX Venture Exchange. Based on the estimated Canadian/US exchange rate of 1.2701 and a share price of $0.08, an estimated 1,193,000 bonus shares are anticipated to be issued.
After this Loan Agreement is complete and the bonus shares are issued, the total number of common shares outstanding would increase from 59,053,455 to about 60,246,455. All common shares issued in connection with the Loan Agreement will be subject to the approval of the TSX Venture Exchange and will be subject to a four-month statutory hold period, in accordance with applicable securities legislation. The board of directors and management of the Company believe that the proposed Loan Agreement is in the best interests of Montana in order to move the Company forward.
The Loan Agreement will not create a new control person of the Company.
About Montana Exploration Corp.
Montana is a Canadian junior oil and gas exploration and production company focusing on the Shaunavon oil opportunities underlying its extensive land holdings in the state of Montana. In the United States the company operates through its wholly owned subsidiary, Montana Land & Exploration, Inc. Montana's common shares are listed on the TSX Venture Exchange under the trading symbol "MTZ". Additional information regarding Montana is available under Montana's profile at www.sedar.com or at Montana's website, www.montanaexplorationcorp.com.
Forward Looking Statements
This press release contains statements that constitute "forward-looking information" or "forward- looking" statements" (collectively "forward-looking information") within the meaning of applicable securities legislation. 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" or similar words suggesting future outcomes or language suggesting an outlook. These forward-looking statements include, among other things, statements relating to the rate of foreign exchange, the debts to be settled under the Loan Agreement, the price of the common shares to be issued pursuant to such transaction and the ability of the Company to execute on the Loan Agreement.
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.
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.
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.
SOURCE Montana Exploration Corp.
For further information: Charles Selby, Chairman and Chief Executive Officer, Telephone: (403) 265-9091, email: [email protected]