Crown Point Ventures Ltd.

Crown Point Ventures Ltd.

November 28, 2011 07:30 ET

Crown Point Ventures Ltd. Announces $13 Million Bought Deal Equity Financing

CALGARY, ALBERTA--(Marketwire - Nov. 28, 2011) -


Crown Point Ventures Ltd. ("Crown Point" or the "Corporation") (TSX VENTURE:CWV) is pleased to announce that it has entered into an agreement with a syndicate of underwriters (the "Underwriters") led by Casimir Capital Ltd. pursuant to which the Underwriters have agreed to purchase, on a bought deal basis, for resale to the public, 13,685,000 common shares at a price of $0.95 per common share to raise gross proceeds of $13,000,750 (the "Offering"). Crown Point has also granted the Underwriters an over-allotment option (the "Over-Allotment Option") to purchase, on the same terms, up to an additional 2,052,750 common shares. The Over-Allotment Option is exercisable in whole or in part by the Underwriters at any time up to 30 days after closing. If the Over-Allotment-Option is exercised in full, the maximum gross proceeds raised would be $14,950,863.

The net proceeds of the Offering will be used to fund the Corporation's capital expenditure program and for other general corporate purposes.

The Common Shares will be offered in certain provinces of Canada by way of a short form prospectus and on a private placement basis elsewhere. The closing of the Offering is expected to occur on or about December 15, 2011, and is subject to certain conditions, including, but not limited to, the receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange.

Crown Point Ventures Ltd. is an oil and gas exploration and development company focused on building sizeable production and reserves in Argentina. The Company's exploration and development activities are currently focused in the Golfo San Jorge and Neuquén basins in Argentina.

The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.


This press release contains forward looking statements and information within the meaning of applicable securities laws including with respect to the timing and completion of the Offering and the intended uses of the proceeds. The usage of words such as "if", "would", "will", "expected" and similar expressions are intended to identify forward looking statements or information. These forward looking statements are subject to numerous risks and uncertainties that may be beyond Crown Point's control. As such, although Crown Point believes such forward looking statements are reasonable, undue reliance should not be placed on the forward looking statements and information, as Crown Point gives no assurance that they will prove to be correct. The closing of the Offering could be delayed if Crown Point is not able to obtain the necessary regulatory and stock exchange approvals on the timelines it has planned. The Offering will not be completed at all if these approvals are not obtained or some other condition to the closing is not satisfied. Accordingly, there is a risk that the Offering will not be completed within the anticipated time or at all. The intended use of the net proceeds of the Offering by Crown Point might change if the board of directors of Crown Point determines that it would be in the best interests of Crown Point to deploy the proceeds for some other purpose, such as an acquisition. All forward looking statements contained in this press release are made as at the date of the release and Crown Point undertakes no obligation to update publicly any revisions made to the forward looking statements, except as required by applicable securities law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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