Its about TIME
Montello Provides Update on Tennessee and Announces Small Financing
Thursday November 20, 10:25 pm ET
CALGARY, ALBERTA--(MARKET WIRE)--Nov 20, 2008 -- Montello Resources Ltd. ("Montello") (CDNX:MEO.V - News) is pleased to announce the commencement of operations for the testing-completion of the John Bowen #2 deep gas zone. The rig arrived on site November 18, 2008. Montello is also currently involved in projects in Alberta.
Montello also wishes to announce a non-brokered flow through private placement unit financing consisting of up to 1,550,000 units priced at $0.31 per unit. The unit is comprised of (4) four non-flow through common shares, (6) six flow through common shares for a total of 10 common shares as well as (10) ten common share purchase warrants exercisable at (5) five cents each, with a one year term.
The proceeds of up to $480,500 from the offering will be used to develop Montello's oil and/or natural gas prospects in Morgan County, Tennessee, and advance exploratory-completion activities on our Alberta joint venture properties.
If all common share warrants are exercised it would provide the Company with additional gross proceeds of $775,000.00. Sixty percent of the proceeds received from the sale of the flow through units will be used by Montello to incur qualifying Canadian exploration expenses, which will be renounced in favour of purchasers for the 2008 and/or 2009 taxation year depending on closing.
The purchase price of the flow through units will be allocated as to $0.03 per common share, and $0.001 per common share warrant. The closing trading price on November 18, 19 and 20, 2008 was (3) three cents per common share on the TSX Venture Exchange.
Finder's fees of up to 8% may be payable in certain instances.
The foregoing is subject to regulatory approval.
ON BEHALF OF THE BOARD OF DIRECTORS
Montello Resources Ltd.
Peter C. Brown, President-CEO
About Montello Resources Ltd: Montello Resources Ltd. (CDNX:MEO.V - News) is a Calgary based, publicly traded oil and gas explorer listed on the TSX Venture Exchange in Canada with operations focussed in Tennessee and in Alberta. Prospective and current shareholders of the Company are invited to join the company's official investment forum exclusively at www.pinnacledigest.com. The forum allows for investor-controlled discussion, questions, third party reports and articles, and progressive feedback from other shareholders and investors. Please go to www.sedar.com for a detailed list of all filings and news releases. Also visit www.montello.com for ongoing updates & have your name included on our mailing list. See http/www.pinnacledigest.com/company/meo:ca.