Apr-26-2010
Press Releases
2010 Press Releases
Crown Point Announces Non-Brokered Private Placement for Up to $6.0 Million
April 26, 2010
CALGARY, ALBERTA, Apr 26, 2010 (Marketwire via COMTEX) — NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Crown Point Ventures Ltd. (CWV) (“Crown Point” or the “Company”) is pleased to announce that, subject to regulatory acceptance, it intends to proceed with a non-brokered private placement financing (the “Private Placement”) of up to 8,000,000 units (the “Units”) of the Company at a price of $0.75 per Unit for aggregate proceeds of up to $6.0 million. Lead orders for 5,000,000 Units have been committed to date by institutional and retail investors. Each Unit will consist of one common share in the capital of the Company and one-half (1/2) of one non-transferable share purchase warrant (each whole warrant a “Series A Warrant”), with each Series A Warrant to entitle the holder to purchase one additional common share at a price of $1.00 for a period of 2 years from the date of closing of the Private Placement, provided that, in the event the closing price of the Company’s shares as traded on the TSX Venture Exchange is $1.50 or greater for a period of 20 consecutive trading days, the Company may give notice of an earlier expiry of the Series A Warrants, in which case they would expire 30 calendar days from the giving of such notice; provided further that, in the event a subscriber exercises any Series A Warrants during the term thereof, the Company will issue to that subscriber that number of Series B Warrants equal to the number of Series A Warrants exercised, with each Series B Warrant to entitle the holder to purchase one additional common share at a price of $1.50 for a period of 3 years from the date of closing of the Private Placement, provided further that, in the event the closing price of the Company’s shares as traded on the TSX Venture Exchange is $2.00 or greater for a period of 20 consecutive trading days, the Company may give notice of an earlier expiry of the Series B Warrants, in which case they would expire 30 calendar days from the giving of such notice. The Units will be subject to regulations governing private placement distributions, and are being sold with a four-month plus one day restriction period, during which time the shares will be restricted from trading.
The offering will fund Crown Point’s next oil well drilling program, following up the successful drilling program conducted by the Company in late 2009. This drilling program resulted in two producing oil wells and a natural gas well. The natural gas well which discovered a sizeable pool is shut in until the Company has secured a market for the natural gas. Crown Point’s El Valle project is located in the Golfo San Jorge Basin, a hydro-carbon rich area which has been the only oil producing area in Argentina where oil production and reserves have consistently increased year over year.
Subject to certain conditions including, but not limited to, the receipt of acceptance from the TSX Venture Exchange, the first closing is expected to occur on or about April 30, 2010. Finders’ fees of 6% in cash or Units are expected to be paid on a portion of the offering, with 8% finders’ options also expected to be paid on a portion of the offering. All currency references are in Canadian dollars.
This news release is not for distribution to United States newswire services or for dissemination in the United States. The securities offered have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
ABOUT CROWN POINT
CROWN POINT VENTURES LTD. IS AN OIL AND GAS DEVELOPMENT COMPANY WITH PRODUCTION IN ARGENTINA. TWO OF CROWN POINT’S THREE WELLS DRILLED IN THE EL VALLE FIELD THE GOLFO SAN JORGE BASIN (SANTA CRUZ, ARGENTINA) ARE CURRENTLY IN PRODUCTION, WITH A SIX WELL DEVELOPMENT DRILLING PROGRAM PLANNED FOR THE BALANCE OF 2010. THIS NEW DRILLING PROGRAM IS FOLLOWING UP ON THE DISCOVERIES MADE IN THE 2009 PROGRAM AND IS FOCUSED ON THE EXPANSION OF PRODUCTION AND CASH FLOW.
FORWARD-LOOKING STATEMENTS
This press release includes certain “forward-looking statements”. All statements, expressed or implied, regarding Crown Point’s future development of its oil and gas properties are forward-looking statements that involve various risks and uncertainties, as disclosed under the heading “Risk Factors” and elsewhere in Crown Point documents filed from time to time with applicable regulatory authorities. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.
SOURCE: Crown Point Ventures Ltd.
Contact:
Murray McCartney
Crown Point Ventures Ltd.
President & CEO
(403) 232-1150
m.mccartney@crownpointenergy.com
Arthur J.G. Madden
Crown Point Ventures Ltd.
Vice-President & CFO
(403) 232-1150
amadden@crownpointenergy.com
Flora Wood
Crown Point Ventures Ltd.
(416) 304-0032
www.crownpointenergy.com
For further information concerning the Company, please contact us directly.