By Devika Patel
Knoxville, Tenn., Aug. 12 - Montello Resources Ltd. announced it will conduct a non-brokered private placement of units for C$2.66 million.
The company will sell 3.25 million units at C$0.51 apiece for C$1.66 million. Each unit consists of 10 shares and 10 warrants.
It also will sell 1.75 million flow-through units at C$0.57 apiece for C$997,500. Each flow-through unit consists of four common shares, six flow-through common shares and 10 warrants.
Each warrant is exercisable at C$0.10 for nine months.
Proceeds will be used to develop the company's oil and natural gas prospects in Morgan County, Tenn., advance exploratory activities on joint venture properties and for general working capital purposes.
Montello is an oil and natural gas company based in Calgary, Alta.
| Issuer: | Montello Resources Ltd.
|
| Issue: | Units of 10 shares and 10 warrants, flow-through units of four common shares, six flow-through common shares and 10 warrants
|
| Amount: | C$2,655,000
|
| Warrants: | 10 warrants per unit
|
| Warrant expiration: | Nine months
|
| Warrant strike price: | C$0.10
|
| Agent: | Non-brokered
|
| Pricing date: | Aug. 12
|
| Stock symbol: | TSX Venture: MEO
|
| Stock price: | C$0.06 at close Aug. 12
|
|
|
| Units
|
| Amount: | C$1,657,500
|
| Units: | 3.25 million
|
| Price: | C$0.51
|
|
|
| Flow-through units
|
| Amount: | C$997,500
|
| Units: | 1.75 million
|
| Price: | C$0.57
|
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