/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES/
(TSX-V:CEX)
CALGARY,
Dec. 21, 2012 /CNW/ - Contact
Exploration Inc. ("Contact" or the "Company") (TSXV:
CEX) is pleased to announce that it has closed the initial tranche
of its previously announced non-brokered private placement (the
"Private Placement") of common shares in the capital of the
Company, to be issued on a "flow-through" basis pursuant to the
Income Tax Act (Canada)
("Flow-Through Shares"). In this initial tranche, the
Company has issued 9,273,033 Flow-Through Shares, at a price of
$0.24 per share, for aggregate gross
proceeds of $2,225,527.92.
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
subscribers effective December 31,
2012. Contact expects to carry out the closing of one
additional tranche of the Private Placement on or before
December 31, 2012, the proceeds of
which are not expected to exceed $50,000.
The Flow-Through Shares issued in this initial tranche of the
Private Placement are subject to a four-month hold period under
applicable securities laws, which hold period expires on
April 22, 2013.
About Contact Exploration Inc.
Contact Exploration Inc. is a public oil and gas
company which has a long-term history of operating in Atlantic Canada and has recently demonstrated
success in Alberta's liquids-rich
Montney Formation tight gas play. For more information, please see
the Company's website: www.contactexp.com
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
second closing of the Private Placement and 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.