Oakmont Minerals Corp.
TSX VENTURE : OMK

Oakmont Minerals Corp.

September 23, 2014 21:08 ET

Oakmont Announces Brokered Private Placement of Common Shares

VANCOUVER, CANADA--(Marketwired - Sept. 23, 2014) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Oakmont Minerals Corp. (TSX VENTURE:OMK) ("Oakmont" or the "Company") is pleased to announce that it will proceed with a brokered private placement of common shares for aggregate gross proceeds of up to $5,000,000.

Oakmont has entered into a letter of engagement with Wolverton Securities Ltd. (the "Agent") to act as agent on a "commercially reasonable efforts" agency basis to sell a minimum of 16,000,000 common shares and a maximum of 20,000,000 common shares, at a price of $0.25 per post consolidation (on a one (1) for two (2) basis) common share, for minimum aggregate proceeds of $4,000,000 and maximum aggregate proceeds of $5,000,000 (the "Offering"), subject to the receipt of approval from the TSX Venture Exchange. All of the common shares issued in connection with the Offering will be subject to a hold period expiring four months and one day after closing of the Offering. Up to $1,000,000 of the Offering, or such other amount as agreed to between the Company and the Agent, may be completed on a non-brokered basis.

Closing of the Offering is conditional upon, among other things, the concurrent closing of the transaction with GreenPower Motor Company Inc. ("GreenPower") as previously announced on April 22, 2014 and approved at the Company's annual general and special meeting on May 16, 2014. The Company intends to use the net proceeds of the Offering to fund the operations of GreenPower including the manufacturing costs of additional EV350 buses, engineering and design, sales and marketing, and general and administrative expenses.

In connection with the Offering, the Agent will be entitled to compensation of (a) up to a 7% cash commission on the gross proceeds of the Offering, and (b) agents options of up to 7% of the number of common shares sold in the Offering, with each such option permitting the Agent to acquire one additional common share at an exercise price of $0.25 per share for a period of 24 months from the date of issuance. The Company will also pay the Agent a corporate finance fee, issue 40,000 post-consolidation shares to Wolverton and reimburse Wolverton for its expenses incurred in relation to the brokered portion of the Offering.

This news release is not an offer of securities of the Company for sale in the United States. The above described issuances of securities of the Company 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 an applicable exemption from registration. This news release shall not constitute an offer to sell or solicitation of an offer to buy nor shall there be any sale of the above described securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

On Behalf of the Board of Directors of Oakmont

OAKMONT MINERALS CORP.

Fraser Atkinson, Chairman, Chief Executive Officer and Director

About GreenPower Motor Company Inc.

GreenPower Motor Company Inc. develops electric buses. The company's first product is a battery powered 12-meter transit bus, with an estimated range of over 250 km on a single charge, which the Company intends to market in North America.

Disclaimer for Forward-Looking Statements

Except for statements of historical fact, this news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" occur. Forward-looking information in this press release includes, but is not limited to, statements regarding expectations of management regarding the issuance of common shares pursuant to the Offering, the proposed use of proceeds, the payment of compensation to the Agent, the expiry of hold periods and regulatory approval. Although the Company believes that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. Such forward-looking statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements including, without limitation, the risks that the private placement may not be completed as expected or at all, that the TSX Venture Exchange may not approve the private placement and such other factors beyond the control of the Company. Except as required by law, the Company expressly disclaims any obligation, and does not intend, to update any forward-looking statements or forward-looking information in this news release.

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.

Contact Information

  • Oakmont Minerals Corp.
    Fraser Atkinson
    Chairman, Chief Executive Officer and Director
    (604) 220-8048
    (604) 681-1867 (FAX)