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 millionfor 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 AlbertaBakken 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.