Kelt Provides Gas Marketing Update and Announces Flow-Through Equity Financing

CALGARY, AB—(Marketwired – October 06, 2017) – Kelt Exploration Ltd. (“Kelt” or the “Company”) (TSX: KEL) has subscribed to TransCanada Corporation's Dawn Long Term Fixed Price (LTFP) service and in addition, has entered into various natural gas sales contracts in order to provide the Company with exposure to diversified gas price hubs and reduce exposure to a single market.

Effective November 1, 2017, Kelt's gas market sales portfolio will consist of the following contracts:

             
Market Term (Sales)   Volume (MMBtu/d)   Percent @ Nov/1/17   Market Price
Nov/1/17 – Oct/31/27   23,695   31%   DAWN USD Daily Index
Nov/1/17 – Oct/31/20   15,000   20%   MALIN USD NGI FOM Index less US$0.70/MMBtu
Nov/1/17 – Oct/31/20   11,990   16%   SUMAS USD Monthly Index less US$0.679/MMBtu
Nov/1/17 – Oct/31/18   3,000   4%   SUMAS USD Monthly Index less US$0.76/MMBtu
Nov/1/17 – Oct/31/18 *   10,330   14%   CHICAGO City Gate USD Gas Daily Index
Nov/1/17 – Oct/31/18   11,305   15%   AECO CAD Daily (5A) Index
TOTAL (effective Nov/1/17)   75,320   100%    
* The Company also has access to priority interruptible transportation service (“PITS”) equating to 25% (2,580 MMBtu/d) of its firm service volume on the Alliance pipeline system under which Kelt can increase the amount of gas sales from its British Columbia properties into the Chicago market.
 

During 2017, Kelt expects that its oil and NGLs production will contribute approximately 76% of its aggregate operating income and gas production will contribute the remaining 24%.

Due to the recent volatility in AECO gas prices, Kelt has elected to temporarily shut–in approximately 21.4 MMcf/d of dry gas production (3,770 BOE/d including associated NGLs) at its Grande Cache and West Pouce Coupe properties in Alberta. AECO CAD Daily (5A) Index prices have averaged $1.55/GJ, $1.65/GJ and $0.93/GJ during the months of July, August and September 2017, respectively. The Company has elected to shut–in production at its dry gas properties due to the weakness in the current AECO price primarily caused by transportation bottlenecks on the entire Western Canadian pipeline transportation system. Kelt expects to keep this production shut–in until AECO prices improve or until November 1, 2017, at which time the Company can direct its gas to non–AECO priced contracts in its gas market sales portfolio. The impact to 2017 guidance based on previously forecasted commodity prices during a 30–day shut–in period with respect to these production volumes would reduce Kelt's 2017 average production guidance of 22,500 BOE per day by 310 BOE per day (1.4%) and previously forecasted 2017 funds from operations of $124.0 million would be reduced by approximately $750,000 (0.6%).

In addition, the Company currently has approximately 4.8 MMcf/d of gas production (1,000 BOE/d including associated NGLs) behind pipe in British Columbia awaiting new compression. In light of the current low gas price environment, the Company has delayed adding compression in order to bring the behind pipe production on–stream and expects to time the production additions with its new gas price contracts starting in November 2017.

FLOW–THROUGH EQUITY FINANCING

Kelt has determined to issue, by way of a non–brokered private placement, 1.4 million common shares on a “flow–through” basis in respect of Canadian Development Expenses (“CDE”) at a price of $7.75 per share resulting in gross proceeds of $11.0 million (the “Private Placement”). Along with certain other subscribers, directors, officers and employees of the Company have subscribed to purchase approximately 8.3% of the Private Placement.

Kelt shall, pursuant to the provisions in the Income Tax Act (Canada), incur eligible CDE (the “Qualifying Expenditures”), after the closing date and prior to December 31, 2017 in the aggregate amount of not less than the total amount of the gross proceeds raised from the Private Placement. Kelt shall renounce the Qualifying Expenditures so incurred to the purchasers of the flow–through common shares with an effective date on or prior to December 31, 2017. The Private Placement is subject to certain conditions including normal regulatory approvals and specifically, the approval of the Toronto Stock Exchange. The common shares issued in connection with the Private Placement will be subject to a statutory hold period of four months plus one day from the date of completion of the Private Placement, in accordance with applicable securities legislation.

Closing for approximately 89% of the Private Placement is expected to occur on or about October 11, 2017. The remaining 11% of the Private Placement is expected to close on or around October 27, 2017.

This press release does not constitute an offer to sell or a solicitation of any offer to buy the common shares in the United States. The common shares have not been and will not be registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of such Act.

OPERATIONS UPDATE

Proceeds from the Private Placement will be used to increase the Company's budgeted drilling and completion expenditures during the remainder of 2017. Kelt expects to increase its 2017 capital expenditure budget with the drilling of five wells on its second pad at Pouce Coupe, Alberta, targeting Montney Oil, where wells from the first multi–well pad at Pouce Coupe paid out in under a year during 2017 (in the current commodity price environment). These five new wells are expected to be completed in January 2018 and will be put on production thereafter into the Company's expanded compression and pipeline infrastructure recently installed at Pouce Coupe.

At Inga, British Columbia, Kelt believes it has fully delineated the Upper Montney on its lands and expects to drill and complete five development wells off a pad. This operation is expected to commence in 2017 and is expected to be completed in the first quarter of 2018. The Company expects to drill its fifth Middle Montney well at Inga in the fourth quarter of 2017 as it continues to delineate the Middle Montney with encouraging results from the first four wells. Kelt has drilled its first Upper Middle (IBZ) well at Inga and expects to complete and test this well by the middle of November 2017.

At Wembley/Pipestone, Alberta, Kelt is targeting the Montney formation in the volatile oil window where the reservoir is expected to be over–pressured. The Company has completed its first exploration well located at 00/04–01–072–08W6. The well was completed using the ball drop hydraulic fracturing method. The horizontal lateral of the well was approximately 2,900 metres and the well was completed using slick–water comprising 50 fracture stages. The well cost approximately $5.7 million to drill and complete. After flowing the well back on a 12 day clean–up, the well, over the last five days of the test, produced average sales volumes of approximately 1,567 BOE per day (64% oil, 20% NGLs and 16% gas). The high NGLs (35% are condensate/pentane) are a result of the high heat value of the gas and the ensuing deep–cut recoveries at the Wembley Gas Plant where Kelt has an ownership interest. The well has now been tied in to the Wembley Gas Plant, however, due to a compressor failure at the plant, the well is not expected to be put on production until mid–November 2017. Given the encouraging results from its first exploration well, the Company expects to follow–up with at least three more wells on its large Wembley/Pipestone land block prior to the end of 2018.

Kelt expects to release its 2017 third quarter results on or about November 9, 2017. At that time, the Company expects to provide shareholders with 2018 guidance including forecasted capital expenditures, production and funds from operations.

ADVISORY REGARDING FORWARD–LOOKING STATEMENTS

This press release contains forward–looking statements and forward–looking information within the meaning of applicable securities laws. The use of any of the words “expect”, “anticipate”, “continue”, “estimate”, “objective”, “ongoing”, “may”, “will”, “project”, “should”, “believe”, “plans”, “intends” and similar expressions are intended to identify forward–looking information or statements. In particular, this press release contains forward–looking statements pertaining to the following: the composition of Kelt's gas marketing contract sales portfolio effective November 1, 2017; the expected duration of the temporary shut–in by Kelt of certain dry gas properties; the Company's plans to incur and renounce Qualifying Expenditures and the expected closing and closing dates of the Private Placement; the various expected drilling and completion operations to be carried out in 2017 and 2018; and the timing of the release of Kelt's third quarter results and 2018 guidance. Statements relating to “reserves” or “resources” are deemed to be forward looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves described exist in the quantities predicted or estimated and that the reserves can be profitably produced in the future. Actual reserves may be greater than or less than the estimates provided herein. Test results and initial production rates disclosed herein may not necessarily be indicative of long–term performance or of ultimate hydrocarbon recovery.

Although Kelt 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 Kelt cannot give any 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. These include, but are not limited to, the risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses; failure to obtain necessary regulatory approvals for planned operations; health, safety and environmental risks; uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures; volatility of commodity prices, currency exchange rate fluctuations; imprecision of reserve estimates; and competition from other explorers) as well as general economic conditions, stock market volatility; and the ability to access sufficient capital. We caution that the foregoing list of risks and uncertainties is not exhaustive.

In addition, the reader is cautioned that historical results are not necessarily indicative of future performance. The forward–looking statements contained herein are made as of the date hereof and the Company does not intend, and does not assume any obligation, to update or revise any forward–looking statements, whether as a result of new information, future events or otherwise unless expressly required by applicable securities laws.

NON–GAAP MEASURES

This press release contains certain financial measures, as described below, which do not have standardized meanings prescribed by GAAP. As these measures are commonly used in the oil and gas industry, the Company believes that their inclusion is useful to investors. The reader is cautioned that these amounts may not be directly comparable to measures for other companies where similar terminology is used.

“Operating income” is calculated by deducting royalties, production expenses and transportation expenses from oil and gas revenue, after realized gains or losses on associated financial instruments. The Company refers to operating income expressed per unit of production as an “Operating netback”. “Funds from operations” is calculated by adding back transaction costs associated with acquisitions and dispositions, provisions for potential credit losses, settlement of decommissioning obligations and the change in non–cash operating working capital to cash provided by operating activities. Funds from operations and operating income or netbacks are used by Kelt as key measures of performance and are not intended to represent operating profits nor should they be viewed as an alternative to cash provided by operating activities, profit or other measures of financial performance calculated in accordance with GAAP.

MEASUREMENTS

All dollar amounts are referenced in thousands of Canadian dollars, except when noted otherwise. This press release contains various references to the abbreviation BOE which means barrels of oil equivalent. Where amounts are expressed on a BOE basis, natural gas volumes have been converted to oil equivalence at six thousand cubic feet per barrel and sulphur volumes have been converted to oil equivalence at 0.6 long tons per barrel. The term BOE may be misleading, particularly if used in isolation. A BOE conversion ratio of six thousand cubic feet per barrel is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead and is significantly different than the value ratio based on the current price of crude oil and natural gas. This conversion factor is an industry accepted norm and is not based on either energy content or current prices. References to oil in this press release include crude oil and field condensate. References to natural gas liquids (“NGLs”) include pentane, butane, propane, and ethane. References to gas in this press release include natural gas and sulphur. Such abbreviation may be misleading, particularly if used in isolation.

ABBREVIATIONS

     
MMcf   million cubic feet
MMcf/d   million cubic feet per day
MMBtu   million British Thermal Units
GJ   Gigajoule
BOE   barrel of oil equivalent
BOE/d   barrel of oil equivalent per day
NGLs   natural gas liquids
AECO   Alberta Energy Company “C” Meter Station of the Nova Pipeline System
NGI   Natural Gas Intelligence
FOM   first of month
USD   United States dollars
CAD   Canadian dollars
CDE   Canadian Development Expenses
TSX   Toronto Stock Exchange
KEL   stock trading symbol for Kelt Exploration Ltd. common shares on the TSX

Kelt Provides Gas Marketing Update and Announces Flow-Through Equity Financing

CALGARY, AB—(Marketwired – October 06, 2017) – Kelt Exploration Ltd. (“Kelt” or the “Company”) (TSX: KEL) has subscribed to TransCanada Corporation's Dawn Long Term Fixed Price (LTFP) service and in addition, has entered into various natural gas sales contracts in order to provide the Company with exposure to diversified gas price hubs and reduce exposure to a single market.

Effective November 1, 2017, Kelt's gas market sales portfolio will consist of the following contracts:

             
Market Term (Sales)   Volume (MMBtu/d)   Percent @ Nov/1/17   Market Price
Nov/1/17 – Oct/31/27   23,695   31%   DAWN USD Daily Index
Nov/1/17 – Oct/31/20   15,000   20%   MALIN USD NGI FOM Index less US$0.70/MMBtu
Nov/1/17 – Oct/31/20   11,990   16%   SUMAS USD Monthly Index less US$0.679/MMBtu
Nov/1/17 – Oct/31/18   3,000   4%   SUMAS USD Monthly Index less US$0.76/MMBtu
Nov/1/17 – Oct/31/18 *   10,330   14%   CHICAGO City Gate USD Gas Daily Index
Nov/1/17 – Oct/31/18   11,305   15%   AECO CAD Daily (5A) Index
TOTAL (effective Nov/1/17)   75,320   100%    
* The Company also has access to priority interruptible transportation service (“PITS”) equating to 25% (2,580 MMBtu/d) of its firm service volume on the Alliance pipeline system under which Kelt can increase the amount of gas sales from its British Columbia properties into the Chicago market.
 

During 2017, Kelt expects that its oil and NGLs production will contribute approximately 76% of its aggregate operating income and gas production will contribute the remaining 24%.

Due to the recent volatility in AECO gas prices, Kelt has elected to temporarily shut–in approximately 21.4 MMcf/d of dry gas production (3,770 BOE/d including associated NGLs) at its Grande Cache and West Pouce Coupe properties in Alberta. AECO CAD Daily (5A) Index prices have averaged $1.55/GJ, $1.65/GJ and $0.93/GJ during the months of July, August and September 2017, respectively. The Company has elected to shut–in production at its dry gas properties due to the weakness in the current AECO price primarily caused by transportation bottlenecks on the entire Western Canadian pipeline transportation system. Kelt expects to keep this production shut–in until AECO prices improve or until November 1, 2017, at which time the Company can direct its gas to non–AECO priced contracts in its gas market sales portfolio. The impact to 2017 guidance based on previously forecasted commodity prices during a 30–day shut–in period with respect to these production volumes would reduce Kelt's 2017 average production guidance of 22,500 BOE per day by 310 BOE per day (1.4%) and previously forecasted 2017 funds from operations of $124.0 million would be reduced by approximately $750,000 (0.6%).

In addition, the Company currently has approximately 4.8 MMcf/d of gas production (1,000 BOE/d including associated NGLs) behind pipe in British Columbia awaiting new compression. In light of the current low gas price environment, the Company has delayed adding compression in order to bring the behind pipe production on–stream and expects to time the production additions with its new gas price contracts starting in November 2017.

FLOW–THROUGH EQUITY FINANCING

Kelt has determined to issue, by way of a non–brokered private placement, 1.4 million common shares on a “flow–through” basis in respect of Canadian Development Expenses (“CDE”) at a price of $7.75 per share resulting in gross proceeds of $11.0 million (the “Private Placement”). Along with certain other subscribers, directors, officers and employees of the Company have subscribed to purchase approximately 8.3% of the Private Placement.

Kelt shall, pursuant to the provisions in the Income Tax Act (Canada), incur eligible CDE (the “Qualifying Expenditures”), after the closing date and prior to December 31, 2017 in the aggregate amount of not less than the total amount of the gross proceeds raised from the Private Placement. Kelt shall renounce the Qualifying Expenditures so incurred to the purchasers of the flow–through common shares with an effective date on or prior to December 31, 2017. The Private Placement is subject to certain conditions including normal regulatory approvals and specifically, the approval of the Toronto Stock Exchange. The common shares issued in connection with the Private Placement will be subject to a statutory hold period of four months plus one day from the date of completion of the Private Placement, in accordance with applicable securities legislation.

Closing for approximately 89% of the Private Placement is expected to occur on or about October 11, 2017. The remaining 11% of the Private Placement is expected to close on or around October 27, 2017.

This press release does not constitute an offer to sell or a solicitation of any offer to buy the common shares in the United States. The common shares have not been and will not be registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of such Act.

OPERATIONS UPDATE

Proceeds from the Private Placement will be used to increase the Company's budgeted drilling and completion expenditures during the remainder of 2017. Kelt expects to increase its 2017 capital expenditure budget with the drilling of five wells on its second pad at Pouce Coupe, Alberta, targeting Montney Oil, where wells from the first multi–well pad at Pouce Coupe paid out in under a year during 2017 (in the current commodity price environment). These five new wells are expected to be completed in January 2018 and will be put on production thereafter into the Company's expanded compression and pipeline infrastructure recently installed at Pouce Coupe.

At Inga, British Columbia, Kelt believes it has fully delineated the Upper Montney on its lands and expects to drill and complete five development wells off a pad. This operation is expected to commence in 2017 and is expected to be completed in the first quarter of 2018. The Company expects to drill its fifth Middle Montney well at Inga in the fourth quarter of 2017 as it continues to delineate the Middle Montney with encouraging results from the first four wells. Kelt has drilled its first Upper Middle (IBZ) well at Inga and expects to complete and test this well by the middle of November 2017.

At Wembley/Pipestone, Alberta, Kelt is targeting the Montney formation in the volatile oil window where the reservoir is expected to be over–pressured. The Company has completed its first exploration well located at 00/04–01–072–08W6. The well was completed using the ball drop hydraulic fracturing method. The horizontal lateral of the well was approximately 2,900 metres and the well was completed using slick–water comprising 50 fracture stages. The well cost approximately $5.7 million to drill and complete. After flowing the well back on a 12 day clean–up, the well, over the last five days of the test, produced average sales volumes of approximately 1,567 BOE per day (64% oil, 20% NGLs and 16% gas). The high NGLs (35% are condensate/pentane) are a result of the high heat value of the gas and the ensuing deep–cut recoveries at the Wembley Gas Plant where Kelt has an ownership interest. The well has now been tied in to the Wembley Gas Plant, however, due to a compressor failure at the plant, the well is not expected to be put on production until mid–November 2017. Given the encouraging results from its first exploration well, the Company expects to follow–up with at least three more wells on its large Wembley/Pipestone land block prior to the end of 2018.

Kelt expects to release its 2017 third quarter results on or about November 9, 2017. At that time, the Company expects to provide shareholders with 2018 guidance including forecasted capital expenditures, production and funds from operations.

ADVISORY REGARDING FORWARD–LOOKING STATEMENTS

This press release contains forward–looking statements and forward–looking information within the meaning of applicable securities laws. The use of any of the words “expect”, “anticipate”, “continue”, “estimate”, “objective”, “ongoing”, “may”, “will”, “project”, “should”, “believe”, “plans”, “intends” and similar expressions are intended to identify forward–looking information or statements. In particular, this press release contains forward–looking statements pertaining to the following: the composition of Kelt's gas marketing contract sales portfolio effective November 1, 2017; the expected duration of the temporary shut–in by Kelt of certain dry gas properties; the Company's plans to incur and renounce Qualifying Expenditures and the expected closing and closing dates of the Private Placement; the various expected drilling and completion operations to be carried out in 2017 and 2018; and the timing of the release of Kelt's third quarter results and 2018 guidance. Statements relating to “reserves” or “resources” are deemed to be forward looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves described exist in the quantities predicted or estimated and that the reserves can be profitably produced in the future. Actual reserves may be greater than or less than the estimates provided herein. Test results and initial production rates disclosed herein may not necessarily be indicative of long–term performance or of ultimate hydrocarbon recovery.

Although Kelt 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 Kelt cannot give any 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. These include, but are not limited to, the risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses; failure to obtain necessary regulatory approvals for planned operations; health, safety and environmental risks; uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures; volatility of commodity prices, currency exchange rate fluctuations; imprecision of reserve estimates; and competition from other explorers) as well as general economic conditions, stock market volatility; and the ability to access sufficient capital. We caution that the foregoing list of risks and uncertainties is not exhaustive.

In addition, the reader is cautioned that historical results are not necessarily indicative of future performance. The forward–looking statements contained herein are made as of the date hereof and the Company does not intend, and does not assume any obligation, to update or revise any forward–looking statements, whether as a result of new information, future events or otherwise unless expressly required by applicable securities laws.

NON–GAAP MEASURES

This press release contains certain financial measures, as described below, which do not have standardized meanings prescribed by GAAP. As these measures are commonly used in the oil and gas industry, the Company believes that their inclusion is useful to investors. The reader is cautioned that these amounts may not be directly comparable to measures for other companies where similar terminology is used.

“Operating income” is calculated by deducting royalties, production expenses and transportation expenses from oil and gas revenue, after realized gains or losses on associated financial instruments. The Company refers to operating income expressed per unit of production as an “Operating netback”. “Funds from operations” is calculated by adding back transaction costs associated with acquisitions and dispositions, provisions for potential credit losses, settlement of decommissioning obligations and the change in non–cash operating working capital to cash provided by operating activities. Funds from operations and operating income or netbacks are used by Kelt as key measures of performance and are not intended to represent operating profits nor should they be viewed as an alternative to cash provided by operating activities, profit or other measures of financial performance calculated in accordance with GAAP.

MEASUREMENTS

All dollar amounts are referenced in thousands of Canadian dollars, except when noted otherwise. This press release contains various references to the abbreviation BOE which means barrels of oil equivalent. Where amounts are expressed on a BOE basis, natural gas volumes have been converted to oil equivalence at six thousand cubic feet per barrel and sulphur volumes have been converted to oil equivalence at 0.6 long tons per barrel. The term BOE may be misleading, particularly if used in isolation. A BOE conversion ratio of six thousand cubic feet per barrel is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead and is significantly different than the value ratio based on the current price of crude oil and natural gas. This conversion factor is an industry accepted norm and is not based on either energy content or current prices. References to oil in this press release include crude oil and field condensate. References to natural gas liquids (“NGLs”) include pentane, butane, propane, and ethane. References to gas in this press release include natural gas and sulphur. Such abbreviation may be misleading, particularly if used in isolation.

ABBREVIATIONS

     
MMcf   million cubic feet
MMcf/d   million cubic feet per day
MMBtu   million British Thermal Units
GJ   Gigajoule
BOE   barrel of oil equivalent
BOE/d   barrel of oil equivalent per day
NGLs   natural gas liquids
AECO   Alberta Energy Company “C” Meter Station of the Nova Pipeline System
NGI   Natural Gas Intelligence
FOM   first of month
USD   United States dollars
CAD   Canadian dollars
CDE   Canadian Development Expenses
TSX   Toronto Stock Exchange
KEL   stock trading symbol for Kelt Exploration Ltd. common shares on the TSX

Rauxa Continues Rapid Growth With New Additions to Client Roster and Executive Team

NEW YORK, NY—(Marketwired – October 06, 2017) – Full–service agency Rauxa today announced three new–business wins:

  • Keep America Beautiful: Rauxa has been named agency of record (AOR) for Keep America Beautiful (KAB), the nation's iconic community improvement nonprofit organization. Selected as KAB's social media AOR in 2016, the agency is now charged with designing and launching a new visual identity for the brand, creating a new public service initiative, developing a 65th anniversary campaign and continuing to enhance its social media presence. These projects will build on Rauxa's previous work to invigorate the business around the topic of recycling, and emphasize the strength of the sustainability movement, with KAB at the forefront.
  • Frontpoint Security: The rapidly growing home security and smart home technology company has named Rauxa its AOR. The agency's scope of work includes brand development, strategic planning, digital transformation and CRM responsibilities, all to position Frontpoint as a category disruptor against competitors like ADT.
  • Piedmont Healthcare: A private, nonprofit organization that serves nearly two million patients across the state of Georgia, Piedmont Healthcare has named Rauxa its direct response AOR. The agency's scope of work will also include strategic planning and digital responsibilities.

The combination of rapid wins signals Rauxa's continued momentum since its launch nearly two decades ago and adds to the agency's roster of clients, which includes TGI Fridays, Gap Inc., Vans, Verizon and Alaska Airlines.

“It's been an exciting year for us as we've grown into new industry verticals and geographic markets, and expanded our talented team of marketers,” said Gina Alshuler, President & CEO of Rauxa. “Our clients have a lot to keep them up at night! They want to be meaningful to their consumer audiences, manage the overwhelming sea of data and create breakthrough technology–enabled experiences. Oh, and let's not forget, they need to drive business results, too. Rauxa builds a strategy and applies the critical components of data, tech and content to move their businesses forward.”

In addition to these new–business wins, Rauxa also announced four senior–level hires:

  • Adan Romero: To better serve clients, Rauxa has restructured its creative department–with a flatter organization featuring three Executive Creative Directors at the helm. Adan joins Rauxa's two other ECDs, John Avery and George Singer, and will lead creative strategy and increase the department's capabilities in bringing forth innovative content that connects deeply with audiences. Prior to joining Rauxa, Adan was Vice President Group Creative Director at DigitasLBi North America for six years, where he led award–winning campaigns for American Express OPEN, among others.
  • Lee Margolis: Lee comes to Rauxa via JWT, Hill Holliday, TBWA\Chiat\Day and, most recently, R/GA, where he worked on Samsung, E*TRADE and Verizon as ECD. In his new position as Creative Director, Lee will work closely with Adan Romero on new business while also helping grow the New York office.
  • Georgia Galanoudis: Georgia joins Rauxa's expanding Strategy Department talent roster, supporting Chief Strategy Officer Ian Baer's team as VP of Strategic Planning during this period of exceptional growth. Prior to joining Rauxa's leadership team, Georgia built nearly 20 years of experience in strategic, content–centric marketing at both Meredith and Time Inc., and most recently served as Managing Director at WPP's Pace.
  • Kevin O'Connor: Kevin joins the agency as Vice President, Strategic Partnerships East, based in Rauxa's New York office, where he will be responsible for fostering and managing new business opportunities that increase revenue and drive growth. Previously, Kevin directed business development for Tribal DDB.
  • Corinne Bellville: Corinne comes to Rauxa's new–business practice as Vice President, Strategic Partnerships West, and will be responsible for building relationships and visibility with clients on the West Coast. She will be based in the Los Angeles office, which is also home to Rauxa's branded content shop, Cats on the Roof. She has a strong entertainment background and has worked at SteelHouse and NBC Universal. Corinne will focus on developing digital marketing solutions for entertainment and CPG companies.

For more information on Rauxa and its work, visit www.rauxa.com.

About Rauxa

Makers of results, Rauxa applies data, technology, and content to create measurable impact at maximum speed for clients that include Gap Inc., TGI Fridays, and Verizon. The country's largest woman–owned independent advertising agency, Rauxa is powered by a team of more than 230 marketing professionals in seven locations across the country–defined by the distinction, “Head. Heart. Hustle.” Find out more at www.rauxa.com.

Primero Closes Sale of Black Fox Mine and Complex

TORONTO, ON—(Marketwired – October 06, 2017) –

(Please note that all dollar amounts in this news release are expressed in U.S. dollars unless otherwise indicated.)

Primero Mining Corp. (“Primero” or the “Company”) (TSX: P) today announces that the Company has closed the previously disclosed sale of the Black Fox mine and associated assets, located near Timmins, Ontario, Canada, to McEwen Mining Inc. (NYSE: MUX) (TSX: MUX) (“McEwen”). Primero will receive total consideration of $32.5 million following a closing net working capital adjustment of $2.5 million. This includes $27.5 million in cash proceeds and the expected release of $5.0 million from restricted cash that was pledged towards environmental closure liabilities in the amount of $16.5 million, which will be assumed by McEwen. The proceeds net of closing costs from the sale of the Black Fox Complex have been used to permanently reduce the outstanding balance on the Company's revolving credit facility (“RCF”). When released, the restricted cash will also be applied to reduce the outstanding balance of the RCF, and following which Primero will have an additional $5.0 million of available credit for further drawdown, if required.

About Primero

Primero Mining Corp. is a Canadian–based precious metals producer that owns 100% of the San Dimas gold–silver mine and the Cerro del Gallo gold–silver–copper development project in Mexico.

Primero's website is www.primeromining.com.

CAUTIONARY STATEMENT ON FORWARD–LOOKING INFORMATION

This news release contains “forward–looking statements”, within the meaning of applicable United States and Canadian securities legislation, concerning the business and operations of Primero Mining Corp. and its consolidated subsidiaries (collectively, “Primero” or the “Company”). All statements, other than statements of historical fact, are forward–looking statements. Forward–looking statements in this news release include statements regarding the Company's expectation to receive total consideration of $32.5 million for the sale of the Black Fox mine and associated assets, the expected release of $5 million from restricted cash, that upon its release such cash will be applied to reduce the outstanding balance of the Company's revolving credit facility, and that thereafter the Company will have an additional $5 million of available credit to further draw on the revolving credit facility. The assumptions made by the Company in preparing the forward–looking information contained in this news release, which may prove to be incorrect, include, but are not limited to: the expectations and beliefs of management; the specific assumptions set forth above in this news release; that there is no significant delay in the release of the restricted cash; that the exchange rate between the Canadian dollar and the United States dollar remain consistent with current levels; that there are no other events or matters that would prevent the Company either from paying down the outstanding balance of the revolving credit facility, or otherwise affect its ability thereafter to draw on the revolving credit facility.

Forward–looking statements are subject to known and unknown risks, uncertainties and other important factors that may cause the actual results, performance or achievements of Primero to be materially different from those expressed or implied by such forward–looking statements, including: there may be delays in the release of the restricted cash; the exchange rate between the Canadian dollar and the United States dollar may change with an adverse impact on the amount of the released restricted cash when stated in U.S. dollars; the Company may not be able draw down, re–finance or extend its line of credit facility. Certain of these factors are discussed in greater detail in Primero's registration statement on Form 40–F on file with the U.S. Securities and Exchange Commission, and its most recent Annual Information Form on file with the Canadian provincial securities regulatory authorities and available at www.sedar.com. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward–looking statements. In addition, although Primero has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward–looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward–looking statements.

Forward–looking statements are made as of the date hereof and accordingly are subject to change after such date. Forward–looking statements are provided for the purpose of providing information about management's current expectations and plans and allowing investors and others to get a better understanding of our operating environment. Primero does not undertake to update any forward–looking statements that are included in this document, except in accordance with applicable securities laws.

Attachment Available: http://www.marketwire.com/library/MwGo/2017/10/3/11G146183/PR21–17_BF_Closing_Final_FINAL–f09c4e8340bc9baaa94e8146ee4c0a5e.pdf

Avoya Travel Wins Top Magellan Awards for Marketing and Innovation

FT. LAUDERDALE, FL—(Marketwired – October 06, 2017) – Avoya Travel®, one of the travel industry's most innovative brands, has won five Travel Weekly magazine Magellan Awards. The awards recognize Avoya's innovation and leadership in the travel industry with marketing and best–in–class initiatives that create a unique and better vacation planning and booking experience for customers and travel professionals.

Avoya's innovation in travel and advancements in marketing were widely recognized with Magellan Awards for 'Promotional Video' and 'Advertising/Marketing Campaign' and two awards in the 'Web Marketing/Advertising' category. Avoya's Live Leads™ program, which is powered by the company's marketing and patented Lead Processing Engine™ to generate new customer leads for Independent Agencies in the Avoya Network™, won 'Travel Agent Innovation.' The awards validate Avoya's commitment to connecting customers with travel professionals for the best planning and booking experience and to helping more Independent Agencies than ever before build successful businesses with new clients. The Magellan Award highlights include:

  • Avoya's Dynamic Remarketing creates relevant online experiences for consumers with tailored marketing. The initiative is increasing consumers' likelihood to book with an Independent Agency in the Avoya Network, and ultimately generates thousands of new Live Leads for the Avoya Network.
  • Avoya's Online Sweepstakes, Win a Cruise Vacation Tailored To You From Avoya Travel, leveraged a targeted marketing campaign to generate unprecedented consumer engagement and interest in connecting with Independent Agencies in the Avoya Network.
  • Avoya's Beyond the Web® Brand Video Series dramatically expanded awareness of the Avoya brand as a unique, better type of travel company. Consumers can see the value of booking with an Independent Agency in the Avoya Network as Avoya places travel professionals at the center of the modern vacation planning process in the series of three videos.
  • Elevating Travel Agents is Avoya's integrated trade marketing campaign that redefined the role of the modern–day travel agent in the vacation planning process. By highlighting the importance of travel professionals, Avoya is creating more awareness for travel as a business opportunity and consequently is experiencing the fastest network growth seen in years.
  • Patented Live Leads is the only complete solution to one of travel agents' biggest challenges – finding and keeping new customers. Available 24/7/365 at no additional cost, Live Leads enable Independent Agencies in the Avoya Network to be more successful because they can focus on relationships, selling, and generating some of the highest incomes in the travel industry.

“We are thrilled to receive top industry recognition for Avoya Travel's dedication to supporting the Independent Agencies in the Avoya Network and delivering exceptional vacation experiences to customers,” said Brad Anderson, President of Avoya Travel. “We continue to innovate for the future of travel and drive advancements in how customers and travel professionals can better connect, plan, and book cruises and vacations.”

The annual Travel Weekly Magellan Awards distinguish the best in travel across the entire spectrum of industry segments and salute outstanding travel professionals. Winners are selected by Travel Weekly editors and industry experts such as Peter Greenberg, Travel Editor for CBS News' The Early Show; John Lampl, Senior Airline Executive with British Airways; Patricia Schultz, Author of 1,000 Places to See Before You Die; and many more.

About Avoya Travel:
Avoya Travel is a family–owned company with a longstanding reputation for being one of the world's most innovative marketing and travel technology companies. As an American Express Travel Representative for more than 30 years, and one of their largest sellers of cruises and tours, Avoya is deeply committed to Integrity and Professionalism™, service, and value in every aspect of planning cruises and vacations. Through an elite network of independently owned and operated travel agencies, Avoya provides exclusive discounts, amenities, and first–class customer service to travelers worldwide. Cruise lines and travel partners recognize this, as Avoya has received numerous accolades, including being repeatedly named Travel Partner of the Year by Norwegian Cruise Line, Royal Caribbean, Celebrity Cruises, Carnival Cruises, American Express, Oceania Cruises, and more. Today, Avoya is headquartered in Ft. Lauderdale, Florida, with support offices throughout the United States.

Travel agency owners, travel professionals, and others interested in owning and operating their own travel business should contact Avoya Travel at 800–521–2597 or visit www.JoinAvoya.com. Travelers interested in booking their next vacation with Avoya Travel, should call 800–753–1463 or visit www.AvoyaTravel.com.

Gobble Announces $15 Million Series B

PALO ALTO, CA—(Marketwired – October 06, 2017) – Gobble, which provides pre–assembled, freshly prepared one–pan meals that busy families can cook in 15 minutes, today announced its $15 million series B.

Khosla Ventures leads the investment. Other Series B investors include Andreessen Horowitz, Initialized Capital and Trinity Ventures.

“We're thrilled to be backed by many of Silicon Valley's most esteemed investors, the visionaries who have helped build the most successful technology companies in the world. This investment will accelerate our capacity to address a very real pain point felt by today's busy working families: their utter lack of free time. Using our dinner kits, parents become Dinner Heros, able to lead their busy lives but still manage to create and enjoy nourishing meals with their loved ones. Our ultimate goal is to help make every day's dinnertime special again,” writes Ooshma Garg, Gobble founder and CEO.

“The meal–kit market comes with strict logistics and business model constraints. Gobble has grown largely through word–of–mouth from their delighted, almost cult–like following of busy families. As a result of this and their ability to solve the many financial and supply chain challenges inherent in the meal–kit market, Gobble is the only meal–kit service that has made their unit economics work exceptionally well and has actually created a high barrier to entry to their business,” says Khosla Ventures Investment Partner, Keith Rabois.

Gobble launched its signature 15–minute one pan dinner kits in late 2015 across California and, over the following two years, expanded to seven states across the West Coast. The company began its aggressive national expansion in the fall of this year and now serves 32 states with each distribution center already at or beyond a break–even cost structure.

In addition to fueling expansion, Gobble will use the funds to fortify an already strong team. Gobble's culinary department is led by Michael Mina protege and now Gobble Executive Chef Thomas Ricci, who was recently joined by former Eatsa and Del Monaco Foods R&D Chef Nancy DeMartini–Bailey. Gobble's logistics efforts are now led by Steve Robinson, former VP of Global Logistics at Starbucks. Gobble's robust data science and engineering teams, which include veterans from Instagram, Medium, PayPal, Practice Fusion, and other high caliber technology companies, will grow their organizations to advance the company's “taste mapping” technology which employs complex personalization algorithms to develop custom menus for each family based on unique taste preferences and dietary needs, as well as regional trends.

“Meal–kit services are deceptively complex. To succeed, they must deliver an exceptional product, overcome daunting logistics, establish a loyal, ongoing following, and build up long–term competitive barriers to entry. Gobble has met and surpassed all of these criteria,” writes Initialized Capital General Partner Garry Tan. “Gobble's investments in culinary R&D and data science have enabled them to build a valuable member base who trust Gobble with their accounts running on 'autopilot'. This investment will accelerate Gobble's growth and help solidify their leadership position as the best end–to–end company in the meal–kit market.”

Gobble 15–minute one pan meal kits are $11.95 per meal for 6 or more meals per week — tax and shipping included.

About Gobble

At Gobble, we help busy families make dinnertime special again. Voted Parent Magazine's #1 Meal Kit Subscription for Families, our fresh, delicious and healthy one–pan meals arrive prepped and ready to serve in 15 minutes or less. Meal kits are so easy that anyone — even kids — can cook delicious, satisfying meals at home. Gobble's proprietary taste mapping technology suggests weekly meals personalized for each family's dietary and taste preferences. Internationally inspired menus designed by celebrated chefs will delight your family's taste buds and transform you into a Dinner Hero. The company has received $26M in venture funding from Silicon Valley titans including Khosla Ventures, Trinity Ventures, Initialized Capital, and Andreessen Horowitz, along with founders and executives from PayPal, LinkedIn, Google and Facebook. www.gobble.com.