Contact Exploration Inc. (CEX.V) is pleased to announce that it has closed its previously announced non-brokered private placement of 20,000,000 common shares in the capital of the Company, issued on a "flow-through" basis pursuant to the Income Tax Act (Canada). The Flow-Through Shares were issued to a private investor at a price of $0.15 per share for aggregate proceeds of $3,000,000.
Following the Private Placement, the private investor now holds 29,000,000 common shares of Contact, representing 13.52% of the issued and outstanding common shares of the Company.
Contact expects to use the proceeds of the Private Placement to incur eligible Canadian Exploration Expenses to fund its ongoing capital programs prior to December 31, 2013. These qualifying Canadian Exploration Expense expenditures will be renounced to the subscriber effective December 31, 2012.
The Flow-Through Shares issued pursuant to the Private Placement are subject to a four-month hold period from the closing date, which hold period expires on November 19, 2012.