CALGARY, ALBERTA--(Marketwire - July 18, 2012) - Treherne Resources Ltd. ("Treherne"), a private company controlled by Clayton H. Riddell, reports that on July 18, 2012, it acquired ownership and control of 20,000,000 common shares of Contact Exploration Inc. ("Contact"), issued on a "flow-through" basis, representing approximately 10.28% of Contact's outstanding common shares, through a non-brokered private placement (the "Offering"). As of the date hereof, Treherne owns or controls a total of 29,000,000 common shares of Contact representing approximately 13.52% of Contact's outstanding common shares after giving effect to the Offering.
The 20,000,000 common shares of Contact were acquired by Treherne pursuant to the terms of the Offering. Pursuant to the Offering, Contact issued 20,000,000 flow-through common shares at a price of $0.15 per common share. The flow-through common shares are subject to a four month hold period from the date of their issuance in accordance with applicable Canadian securities legislation. The total consideration paid by Treherne for the common shares acquired was $3,000,000.
Treherne acquired the common shares of Contact for investment purposes. The acquisition pursuant to the Offering was made in reliance on section 2.3 of NI 45-106. Mr. Riddell or entities controlled by him may increase or decrease ownership of, or control over, securities of Contact depending on market conditions or any other relevant factor.
For further information, or to obtain a copy of the early warning report filed in connection with this matter, please contact Clayton H. Riddell.