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.