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.