May-06-2010
Press Releases
2010 Press Releases
Crown Point Announces Initial Closing of Private Placement and New Director Election
May 6, 2010
VANCOUVER, BRITISH COLUMBIA, May 06, 2010 (MARKETWIRE via COMTEX) — Crown Point Ventures Ltd. (“Crown Point”, “We” or “the Company”) (CWV) is pleased to announce the initial closing of the non-brokered private placement financing announced by press release dated April 26, 2010. The Company plans to raise up to $6,000,000 through a unit offering priced at $0.75, each unit consisting of one common share and one-half (1/2) of one Series A warrant exercisable at $1.00 until May 5, 2012 (subject to potential earlier expiry as disclosed in the April 26, 2010 press release), each of which is replaceable if exercised by one Series B warrant, details of which were also provided in the April 26, 2010 press release. The closing price of Crown Point’s shares on May 5, 2010, the initial closing date, was $0.87. The initial closing was for 4,289,334 units ($3,217,000). The final closing is expected to take place no later than May 17, 2010. Interested parties should contact the Company in Calgary or Toronto (see numbers below).
In conjunction with the initial closing, the Company has issued the following consideration to various finders:
(a) 112,620 finder units (“Finder Units”) (each having the same terms and conditions as the units sold under the private placement); and
(b) 173,987 finder options, entitling the holders to purchase up to 173,987 Finder Units.
All of the securities issued in connection with the initial closing, including the securities issued to various finders, are subject to a hold period in Canada until September 5, 2010.
Annual General Meeting of Shareholders and Director Election
Crown Point held its Annual General Meeting of Shareholders on May 3, 2010 in Vancouver, B.C. All motions presented at the meeting were passed, including the renewal of the Company’s Stock Option Plan. The following individuals were elected as directors at the Annual General Meeting:
Gordon Kettleson (Chair)
Murray McCartney (President and CEO)
Denny Deren
Martin Walter
Mateo Turic (President of Argentina subsidiary and new director)
John Chulick (new director)
John Clark (new director)
Murray McCartney, President and CEO, commented, “We are pleased to welcome Mateo Turic, John Chulick and John Clark to our Board. Mateo leads our Argentina operations, and as the former Director of Exploration and Production for YPF, is a leading figure in Argentina’s oil and gas industry. John Chulick is an MBA and Colorado School of Mines geologist who has been in Latin America for over 25 years, and John Clark is a CA who was the former Executive Chairman of Canadian oil and gas producer Laurasia Resources prior to its acquisition in 1998. Since then, John has been a principal of a private investment manager. We would also like to recognize the years of service and valuable contribution from former directors William Keast, Jack Taylor and Crown Point’s founder, Hal Kettleson. These gentlemen have made important contributions to the evolution of the Company, and we continue to benefit from the structure they built, and their shareholder support.”
Investor Relations Engagement
Crown Point has also commenced an investor relations program designed to raise the profile of the Company in the public markets. Mr. McCartney further commented, “We are pleased to announce that Flora Wood has joined our team on a consulting basis as Manager, Investor Relations. Flora was formerly VP Investor Relations for Aquiline Resources Inc., whose Navidad Silver Project was one of the largest undeveloped silver resources in Argentina, located in Chubut province. We value Flora’s experience in both North America and Argentina, and also appreciate the backing of former Aquiline shareholders and management.”
Ms. Wood is engaged on a contract basis, at a rate of $5,000 per month plus an option allocation which is to be finalized in the context of the next Board-approved options grant. Either Ms. Wood or Crown Point can terminate her engagement without penalty, subject to a 30 day notice provision.
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 San Jorge Basin (Santa Cruz, Argentina) are currently in production, with a three well program planned in 2010 to expand production and follow up discovery data gained in the first drilling program.
Advisory
This news release contains certain forward-looking statements, which are based on numerous assumptions including but limited to (i) drilling success; (ii) production; (iii) future capital expenditures; and (iv) cash flow from operating activities. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect.
Certain information regarding Crown Point set forth in this document, including management’s assessment of Crown Point’s future plans and operations, number, type and timing of wells to be drilled, the planning and development of certain prospects, production estimates, and expected production growth may constitute forward-looking statements under applicable securities laws and necessarily involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond Crown Point’s control, including without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, environmental risks, inability to obtain drilling rigs or other services, capital expenditure costs, including drilling, completion and facility costs, unexpected decline rates in wells, wells not performing as expected, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources, the impact of general economic conditions in Canada, Argentina, the United States and overseas, industry conditions, changes in laws and regulations (including the adoption of new environmental laws and regulations) and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, and stock market volatility and market valuations of companies with respect to announced transactions and the final valuations thereof. Readers are cautioned that the foregoing list of factors is not exhaustive. Crown Point’s actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits, including the amount of proceeds, that the Company will derive there from. Readers are cautioned that the foregoing list of factors is not exhaustive. All subsequent forward-looking statements, whether written or oral, attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements.
Additional information on these and other factors that could affect Crown Point’s operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed at www.sedar.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsiblity for the adequacy or accuracy of this press release.
Contact:
Crown Point Ventures Ltd.
Murray McCartney
President & CEO
(403) 232-1150
m.mccartney@crownpointenergy.com
Crown Point Ventures Ltd.
Arthur J.G. Madden
Vice-President & CFO
(403) 232-1150
amadden@crownpointenergy.com
Crown Point Ventures Ltd.
Flora Wood
Manager Investor Relations
(416) 304-0032
fwood@crownpointenergy.com
SOURCE: Crown Point Ventures Ltd.
For further information concerning the Company, please contact us directly.