Business
Butte Energy Inc. Announces Proposed Private Placement of up to $16 million
TSXV ticker symbol: BEN CALGARY , July 4, 2014 /CNW/ - Butte Energy Inc. (the " Co...
About this update from Argenta Silver Corp
[{"type":"text","content":"\n\n\nTSXV ticker symbol: BEN\n\n\nCALGARY, July 4, 2014 /CNW/ - Butte Energy Inc. (the \"Corporation\") (TSXV: BEN) is pleased to announce that it intends to complete a\n non-brokered private placement of up to $16 million of common shares of\n the Corporation, on a post-consolidation basis (the \"Offering\").\n\n\nThe Offering will be subject to the consolidation of the issued and\n outstanding common shares of the Corporation (the \"Consolidation\") on the basis of up to five (5) pre-consolidation common shares of the\n Corporation (\"Pre-Consolidation Shares\") for every one (1) post-consolidation common share (a \"Post-Consolidation Share\"), or at any final ratio as the board of directors of the Corporation\n may determine to be appropriate (the \"Consolidation Ratio\").  The Corporation currently intends to seek shareholder approval for\n the Consolidation at its next annual meeting of shareholders.\n\n\nAssuming completion of the Consolidation, the Corporation will issue\n Post-Consolidation Shares using a pre-consolidation price of $0.25 per\n share for aggregate gross proceeds of up to $16,000,000, under the\n Offering.\n\n\nThe closing of the Offering is expected to occur prior to the end of\n July 2014 and is subject to the completion of formal documentation,\n shareholder approval of the Consolidation and receipt of regulatory\n approval, including the conditional approval of the TSX Venture\n Exchange (the \"Exchange\").\n\n\nThe Corporation intends to use the net proceeds from the Offering for\n proving up the Corporation's existing and new prospects in Alberta as\n well as working capital for ongoing operations.\n\n\nIn connection with the Consolidation and the Offering, the Corporation\n also intends to enter into debt settlement agreements to settle the\n Corporation's outstanding non-bank debt in the aggregate of up to $11\n million owing to two creditors of the Corporation (the \"Debt Settlements\"), each of whom is an insider of the Corporation, by the issuance of\n Post-Consolidation Shares using a pre-consolidation price of $0.50 per\n share.\n\n\nIt is expected that shareholder approval for the Debt Settlements will\n be sought at the Corporation's next annual meeting of shareholders. \n The Debt Settlements will be subject to completion of formal\n documentation and receipt of shareholder and r...