Contact Closes Unit Financing
Contact Exploration Inc. closed on December 21, 2006, a non-brokered private placement, totaling $690,000. The closing consisted of 690,000 Units at a price of $1.00 per Unit. Each Unit consisted of one common share and one-half purchase warrant, each whole warrant entitles the holder to purchase one common share at an exercise price of $1.40 per share expiring June 21, 2008.
In connection with the private placement, certain agents were paid a cash commission representing 7% of the aggregate subscription funds arranged through them for a total of $46,550 along with broker options to purchase 46,550 common shares exercisable at $1.00 per share for a two-year period.
All securities issued pursuant to these private placements, including the securities issued in payment of commissions, are and will be subject to a four-month hold period, commencing at closing.
The proceeds from these private placements will be used to finance continuing exploration and development activities at Contact's coal bed methane properties in Nova Scotia, and at its Stoney Creek property in New Brunswick, as well as for general corporate purposes. The flow-through funds raised from the issuance of the shares shall be used for exploration, which will constitute Canadian exploration expense (as defined in the Income Tax Act) and will be renounced for the 2006 taxation year to subscribers.
Contact is a junior exploration company with a focus on Canadian East Coast onshore exploration. Contact's land claims and holdings are located in close proximity to the largest consumption markets in North American with pipeline and refinery infrastructure in place.
Contact has interests in approximately 1.5 million acres onshore Nova Scotia including its 25% working interest in the developing Coal Bed Methane play at Cumberland, approximately 160,000 acres onshore West Newfoundland and 165,000 acres onshore New Brunswick which includes the Stoney Creek Field.
- Contact Updates on Seismic Acquisition, Shale Gas Prospect (Sep 16)
- Contact Exploration Spuds New Development Well at Stoney Creek Field (Nov 24)
- Contact's Canadian Reserves Estimated at Over 1MM Barrels (Jul 23)