CALGARY, March 3, 2017 /CNW/ – Montana Exploration Corp. (“Montana” or the “Corporation“) (TSXV:MTZ) has entered into settlement agreements (the “Settlement Agreements“) with certain of its creditors, whereby the Corporation shall issue common shares of the Corporation at a deemed price of $0.195 per common share in full and final settlement of the amounts owing to such creditors (the “Shares for Debt Settlement“). Pursuant to the Settlement Agreements, the Corporation intends to settle an aggregate of 309,957.47 in indebtedness by issuing a total of 1,589,527 common shares to creditors. Ian Page, Vice President of Exploration of the Corporation, has agreed to settle $91,107.47 of debt as part of the transaction.
The common shares issued pursuant to the Shares for Debt Settlement would represent 2.7% of the issued and outstanding common shares of Corporation following the completion of the transaction. All common shares issued in connection with the Shares for Debt Transaction 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 and management of the Corporation believe that the proposed Shares for Debt Settlement is in the best interests of Montana in order to move the Corporation forward and reduce its working capital deficiency.
The Shares for Debt Settlement will not create a new control person of the Corporation.
About Montana Exploration Corp.
Montana is a Canadian junior oil and gas exploration and production company focusing on the Bakken and 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.