/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES/
(TSX-V:CEX)
CALGARY, July 18, 2012 /CNW/ - Contact Exploration Inc.
("Contact" or the "Company") (TSXV: CEX) is pleased
to announce that it has closed its previously announced
non-brokered private placement (the "Private Placement") of
20,000,000 common shares in the capital of the Company, issued on a
"flow-through" basis pursuant to the Income Tax Act
(Canada) ("Flow-Through
Shares"). The Flow-Through Shares were issued to a
private investor at a price of $0.15
per share for aggregate proceeds of $3,000,000.
Following the Private Placement, the private
investor now holds 29,000,000 common shares of Contact,
representing 13.52% of the issued and outstanding common shares of
the Company.
Contact expects to use the proceeds of the
Private Placement to incur eligible Canadian Exploration Expenses
to fund its ongoing capital programs prior to December 31, 2013. These qualifying
Canadian Exploration Expense expenditures will be renounced to the
subscriber effective December 31,
2012.
The Flow-Through Shares issued pursuant to the
Private Placement are subject to a four-month hold period from the
closing date, which hold period expires on November 19, 2012.
About Contact Exploration Inc.
Contact Exploration Inc. is a public company
which is currently pursuing a new core area in Alberta's "Deep Basin" targeting the
Montney Formation.
Historically, the Company 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 Deep Basin,
Alberta, and to participate
through overrides and carried interests in certain regional
unconventional plays in Nova
Scotia and Newfoundland.
ADVISORY ON FORWARD-LOOKING STATEMENTS: This
press release contains certain forward-looking information and
statements within the meaning of applicable securities laws. The
use of any of the words "expect", "anticipate", "continue",
"estimate", "may", "will", "project", "should", "believe", "plans",
"intends" and similar expressions are intended to identify
forward-looking information or statements. In particular, but
without limiting the forgoing, this press release contains
statements concerning the anticipated use of the proceeds of the
Private Placement.
Forward-looking statements or information are
based on a number of material factors, expectations or assumptions
of Contact which have been used to develop such statements and
information but which may prove to be incorrect. 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
Canadian Exploration Expense expenditures.
The forward-looking statements
contained in this press release are made as of the date hereof and
Contact undertakes no obligations 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.
Neither 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 Contact Exploration Inc.