Bellamont Exploration Ltd.
TSX VENTURE : BMX.A
TSX VENTURE : BMX.B

Bellamont Exploration Ltd.

December 03, 2007 09:20 ET

Bellamont Exploration Announces an Increase to Financing to a Maximum of $7.5 Million

CALGARY, ALBERTA--(Marketwire - Dec. 3, 2007) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW.

Bellamont Exploration Ltd. ("Bellamont" or "the Company") (TSX VENTURE:BMX.A)(TSX VENTURE:BMX.B) is pleased to announce that it has increased its equity financing, previously announced on November 27, 2007, to a maximum of $7.5 million. The aggregate gross proceeds from the issuance of Class A Shares in the capital of the Company ("Class A Shares") and Class A Shares issued on a flow-through basis ("Flow-Through Shares") will now be approximately $7.5 million, with a maximum of $4.0 million raised from the issuance of Flow Though Shares. The financing, entered into with a syndicate of agents led by GMP Securities L.P. and including Blackmont Capital Inc., FirstEnergy Capital Corp. and Tristone Capital Inc., consists of the issuance of Class A shares at a price of $0.80 per Class A Share and Flow-Through Shares at a price of $0.90 per Flow Through Share.

The Class A Shares and Flow-Through Shares will be issued on a private placement basis and will be subject to a four month hold period from the date of closing, currently scheduled for December 13, 2007. The transaction is subject to the receipt of all necessary regulatory and stock exchange approvals.

Proceeds from this offering will be used to expand Bellamont's development and exploration of its 40 drilling locations in the Peace River Arch and its previously announced southeast Saskatchewan farm in agreement, and if deemed warranted by Bellamont's Board of Directors a portion of the funds may be allocated to future strategic acquisition opportunities.

Bellamont is an emerging oil and gas company focused on the acquisition, exploration, development and production of oil and natural gas in western Canada and trades on the TSX Venture Exchange under the symbols "BMX.A" and "BMX.B". The Corporation presently has 25,770,532 Class A shares and 1,012,000 Class B shares outstanding.

This document contains forward-looking statements. More particularly, this document contains statements concerning the amount of funds to be raised pursuant to the financing, the timing of the closing of the financing and the anticipated use of net proceeds of the offering.

Although Bellamont believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Bellamont 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. Actual results could differ materially from those currently anticipated due to a number of factors and risks. The offering is being marketed on a "best efforts" basis and there is no assurance that the maximum offering will be completed. Closing of the offering could be delayed if Bellamont is not able to obtain the necessary regulatory approvals on the timelines it has planned. The offering will not be completed at all if these approvals are not obtained or other conditions to the offering are not satisfied. Accordingly, there is a risk that the offering will be completed within the anticipated time or at all. The intended use of the net proceeds of the offering may change if the board of directors of Bellamont determines that it would be in the best interests of Bellamont to deploy the proceeds for some other purpose, such as an acquisition.

The forward-looking statements contained in this press release are made as of the date hereof and Bellamont undertakes no obligation 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.

THIS NEWS RELEASE SHALL NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY SECURITIES IN ANY JURISDICTION. THE SHARES OFFERED WILL NOT BE AND HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933 AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES ABSENT REGISTRATION OR AN APPLICABLE EXEMPTION FROM THE REGISTRATION REQUIREMENT.

THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Contact Information

  • Bellamont Exploration Ltd.
    Steve Moran
    President and Chief Executive Officer
    (403) 802-6840
    or
    Bellamont Exploration Ltd.
    Danny Geremia
    Vice President Finance and Chief Financial Officer
    (403) 802-6840
    or
    Bellamont Exploration Ltd.
    Suite 200, 1324 - 17th Avenue S.W.
    Calgary, Alberta T2T 5S8
    (403) 802-1315 (FAX)
    Website: www.bellamont.com