CALGARY, Jan. 18, 2017 /CNW/ – Montana Exploration Corp. (“Montana” or the “Company“) (TSXV: MTZ) is pleased to announce that the Company raised gross proceeds of $1,496,245.34 from its previously announced offering of rights (“Rights“) which expired on January 13, 2017 (the “Rights Offering“). Proceeds of the Rights Offering will be applied to the Company’s working capital deficiency and to fund general and administrative expenses as the Company seeks partners to build upon the success of the Company’s five well drilling program.
The Company issued an aggregate of 7,673,053 common shares (“Common Shares“) resulting in a post-closing total of 57,463,928 outstanding Common Shares. No Common Shares were issued pursuant to any stand-by commitment and no fees or commissions were paid in connection with the Rights Offering.
Insiders of Montana subscribed for 6,827,491 Common Shares comprised of 6,457,212 Common Shares under the basic subscription privilege and 370,279 Common Shares under the additional subscription privilege. All other persons subscribed for 337,396 Common Shares under the basic subscription privilege and 508,166 Common Shares under the additional subscription privilege. Montana’s principal shareholder, Vanco-Stock Ltd. (“Vanco“), subscribed for an aggregate of 6,776,620 Common Shares for total proceeds of $1,321,440.90 in an aggregate amount equal to the Rights held by Vanco both in registered and beneficial form meeting Vanco’s commitment to Montana. For administrative reasons, Vanco exercised the additional subscription privilege in an amount equal to the Rights held beneficially to reach that total.
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