/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES/
(TSXV: CEX)
CALGARY,
April 25, 2012 /PRNewswire/ - Contact
Exploration Inc. ("Contact" or the "Company") (TSXV:
CEX) is pleased to announce that it has closed its previously
announced brokered private placement (the "Private
Placement") pursuant to which it has issued 10,254,000
common shares of the Company issued on a "flow-through" basis
pursuant to the provisions of the Income Tax Act
(Canada) (the "Flow-Through
Shares") at an issue price of $0.13 per Flow-Through Share for aggregate gross
proceeds of $1,333,020 (the
"Private Placement"). MGI acted as agent to the
Company and was paid a cash commission equal to 7% of the aggregate
gross proceeds raised by the Company.
The Flow-Through Shares issued pursuant to the
Private Placement are subject to a four-month hold period from the
date hereof, which expires on August 26,
2012.
Contact expects to use the proceeds of the Private
Placement to incur eligible Canadian Exploration Expenses to fund
its ongoing capital programs. These qualifying Canadian Exploration
Expense expenditures will be renounced to subscribers effective
December 31, 2012.
Contact is also pleased to announce that Mr. Robert
B. Hodgins CA has joined Contact's Board of Directors. Mr.
Hodgins has been an independent businessman since November 2004, having served as the Chief
Financial Officer of Pengrowth Energy Trust from 2002 to 2004.
Prior to that, Mr. Hodgins held the position of Vice President and
Treasurer of Canadian Pacific Limited from 1998 to 2002 and was
Chief Financial Officer of TransCanada Pipelines Limited from 1993
to 1998. Mr. Hodgins is currently a director, and Audit
Committee Chairman, of a number of companies in the energy
business, including AltaGas Ltd., Enerplus Corporation, Fairborne
Energy Ltd. and MEG Energy Corp.
"Mr. Hodgins brings a wealth of business and
corporate governance skills to Contact and we are extremely pleased
to welcome him to our Board", said Steve
Harding, President and CEO of Contact.
About Contact Exploration Inc.
Contact Exploration Inc. is a public company which
has been focused on Canadian East Coast onshore oil and gas
exploration and development. Our philosophy is to operate
exploration and development in our core areas of Stoney Creek, Hillsborough and Edgett's Landing,
New Brunswick and to participate
through overrides and carried interests in certain regional
unconventional plays in Nova
Scotia and Newfoundland. In
addition to the Atlantic Canadian properties, Contact is pursuing a
new core area in Alberta's "Deep
Basin" targeting the Montney Formation.
Forward Looking Information
This press release contains forward looking
statements. More particularly, this press release contains
statements concerning the anticipated use of the proceeds of the
Private Placement. Although Contact believes that the
expectations reflected in these forward looking statements are
reasonable, undue reliance should not be placed on them because
Contact can give no assurance that they will prove to be
correct. Since forward looking statements address future
events and conditions, by their very nature they involve inherent
risks and uncertainties. The intended use of the proceeds of
the Private Placement by Contact might change if the board of
directors of the Company determines that it would be in the best
interests of Contact to deploy the proceeds for some other
expenditures.
The forward looking statements contained in this
press release are made as of the date hereof and Contact undertakes
no obligation to update publicly or revise any forward looking
statements or information, whether as a result of new information,
future events or otherwise, unless so required by applicable
securities laws.
The Flow-Through Shares offered have not been
and will not be registered under the United States Securities Act
of 1933, as amended and may not be offered or sold in the United States absent registration or an
applicable exemption from the registration requirement. This
press release shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of the
securities in any jurisdiction in which such offer, solicitation or
sale would be unlawful.
Neither the TSX Venture Exchange nor its
Regulation Service Provider (as that term is defined in the
policies of the Exchange) accepts responsibility for the adequacy
or accuracy of this release.
SOURCE Contact Exploration Inc.