CALGARY, Nov. 17 /CNW/ - Raimount Energy Inc. ("Raimount") ("TSX - RMT") announces that it has made application to the TSX Venture Exchange (the "Exchange") to offer, on a private placement basis, up to 2,100,000 common shares of which 700,000 will be issued at $0.80 per share and 1,400,000 will be issued on a flow through basis at $1.00 per share for a maximum gross proceeds of $1,960,000. Proceeds of the offering shall be used to acquire lands under lease and to drill one well on the Company's Woolford property and one well on the Company's Innisfail property.
The private placement offering was recommended to the directors of Raimount by management. The directors are of the view that the private placement offering is an appropriate step for Raimount at this time. The proceeds of the private placement offering are required by Raimount to further evaluate its acreage at Woolford, Alberta and to test its seismic interpretation at Innisfail, Alberta. The resolution approving the private placement offering was unanimously approved by the directors of Raimount. Each director of Raimount has expressed an interest in acquiring a portion of the offering, but no new "Control Person" will be created as a result of the private placement.
The private placement offering is subject to Exchange and regulatory approval. The shares to be issued under the private placement are subject to a four month hold period unless regulatory approval is obtained. The Corporation anticipates closing the private placement within thirty (30) days.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
SOURCE Raimount Energy Inc.
For further information: For further information: Gregory A. Vavra, President, Raimount Energy Inc., Telephone: (403) 265-6292, E-mail: email@example.com, Fax: (403) 265-2110