Published: January 12, 2012
Mountainview Announces USD $2 Million Loan to Drill Wells in Bakken & Three Forks Shale in the Williston Basin
CUT BANK, MT, Jan. 12, 2012 /PRNewswire/ - Mountainview Energy Ltd. ("Mountainview" or the "Company") (TSX-V: MVW) is pleased to announce that it has entered into a loan
arrangement with an affiliate of an insider of the Company (the "Lender"), pursuant to which the Lender will lend Mountainview USD $2 million
for a term of 2 years at an annual interest rate of 8.0% (the "Loan"). Pursuant to the Loan, Mountainview is not required to repay any
portion of the principal amount or any interest thereon prior to
maturity, but may, at its option, repay any or all principal and
interest amounts owing under the Loan at any time prior to maturity.
The Loan is subject to all applicable regulatory and exchange
approvals.
Mountainview intends to use the proceeds from the Loan to further
Mountainview's exploration and early development programs in the Bakken
and Three Forks Shale in the Williston Basin and the South Alberta
Bakken play, for future corporate and asset acquisition and farm-in
opportunities and for general corporate purposes.
The Loan is a "related party transaction" pursuant to Multilateral
Instrument 61-101- Protection of Minority Security Holders in Special Transactions ("MI 61-101") by virtue of the insider's relationship with the Company and the
Lender. Pursuant to MI 61-101, absent an available exemption, the
Company would be required to obtain minority approval and a formal
valuation for the Loan. Such an exemption is available pursuant to
Sections 5.5(a) and 5.7(a) of MI 61-101, respectively, because at the
time the transaction was agreed to, neither the fair market value of
the subject matter of, nor the fair market value consideration for the
transaction, exceeds 25% of the Company's market capitalization.
Information about the Company
Mountainview Energy Ltd. is a public oil and gas company listed on the
Exchange, with a primary focus on the exploration, production and
development of the Bakken and Three Forks Shale in the Williston Basin
and the South Alberta Bakken play.
Forward Looking Statements
This press release contains forward looking statements. More
particularly, this press release contains statements concerning the
anticipated repayment of the Loan, the use of proceeds from the Loan
and certain related matters. Although Mountainview believes that the
expectations reflected in these forward looking statements are
reasonable, undue reliance should not be placed on them because
Mountainview 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.
Mountainview may not be able to obtain the necessary regulatory and
stock exchange approvals on the timelines it has planned or at all. The
Loan will not be completed at all if these approvals are not obtained.
Accordingly, there is a risk that the Loan will not be completed within
the anticipated time or at all.
The forward looking statements contained in this press release are made
as of the date hereof and Mountainview 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 policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
SOURCE Mountainview Energy Ltd.
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