Butte Energy announces closing of private placement financing
July 29 2012 - 9:12PM
PR Newswire (Canada)
TSXV: BEN /NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR
DISTRIBUTION TO U.S. WIRE SERVICES/ CALGARY, July 30, 2012 /CNW/ -
Butte Energy Inc. ("Butte" or the "Company") announces that further
to its press releases dated May 16, 2012 and June 29, 2012, it has
successfully completed its non-brokered private placement for
9,436,908 common shares in the capital of the Company ("Common
Shares") at an issue price of $0.25 per share for aggregate gross
proceeds of $2,359,227 (the "Private Placement"). The Common Shares
issued pursuant to the Private Placement offering are subject to a
hold period under applicable securities laws until December 1,
2012. The net proceeds of this offering will be used in the
Company's on-going exploration and development activities in
Central Alberta including the Company's farm-out obligations and
for working capital. Mr. Victor Redekop, a director of the Company,
owned, or exercised control or direction over, directly or
indirectly, an aggregate of 18,703,912 Common Shares representing
54.5% of the Common Shares outstanding prior to the completion of
the Private Placement. As a result of the Private Placement,
Mr. Redekop beneficially owns, or exercises control or direction
over, directly or indirectly, an aggregate of 25,703,912 Common
Shares, representing approximately 58.8% of the issued and
outstanding Common Shares. As a result of his ownership, the
Private Placement constitutes a "related party transaction"
pursuant to Multilateral Instrument 61-101 - Protection of Minority
Security Holders in Special Transactions ("MI 61-101"). MI
61-101 provides a number of circumstances in which a transaction
between an issuer and a related party may be subject to valuation
and minority approval requirements. An exemption from the
formal valuation requirements is available as the securities of the
Company are not listed or quoted on any of the markets specified in
subsection 5.5(b) of MI 61-101 and an exemption from minority
approval requirements is available as the fair market value of the
related party transaction is less than $2.5 million. Consequently,
the Private Placement is not subject to the valuation and minority
approval requirements of MI 61-101. The board of directors of
the Company approved the Private Placement. The Company did
not file a material change report more than 21 days before the
expected closing of the Private Placement as details of the Private
Placement were not settled until shortly before the closing of the
Private Placement. Cautionary statements This news release contains
"forward-looking statements" within the meaning of applicable
securities laws relating to the use of proceeds from the Private
Placement. Readers are cautioned not to place undue reliance
on forward-looking statements. Actual results and developments may
differ materially from those contemplated by these statements
depending on, among other things, the risks that regulatory
approval will not be obtained in a timely manner or at all. The
statements in this news release are made as of the date of this
release. Except as required by law, the Company expressly disclaims
any intention or obligation to update or revise any forward-looking
statements whether as a result of new information, future events or
otherwise. Neither the TSX Venture Exchange, Inc. nor its
Regulation Service Provider (as that term is defined under the
policies of the TSX Venture Exchange) has in any way passed upon
the merits of the Proposed Acquisition and associated transactions
and has neither approved nor disapproved of the contents of this
press release. Not for distribution to U.S. Newswire Services or
for dissemination in the United States. Any failure to comply with
this restriction may constitute a violation of U.S. Securities
laws. Butte Energy Inc. CONTACT: Butte Energy Inc.Victor Redekop,
ChairmanTel: (403) 541-5310
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