Corridor Arranges $2-Million And $510,000 Financings
Calgary, Alberta, December 11, 2001: Corridor Resources will be offering up to a maximum of one million Flow Through common shares at a price of $2.00 per common share. Corridor is also proceeding with a private placement of up to 300,000 non-Flow Through common shares at a price of $1.70 per common share. The common shares will be offered on a private placement basis to residents of Alberta, British Columbia and Ontario. The private placement is subject to approval by the Canadian Venture Exchange and is expected to close prior to Dec. 31, 2001.
Proceeds from the Flow Through common shares will be used to finance exploration on Corridor's New Brunswick and other East Coast properties and will be used to incur Canadian exploration expenditures (CEE) or Canadian development expenditures eligible for CEE treatment under the Income Tax Act, equal to the subscription amount, which will be renounced to investors. Proceeds from the non-Flow Through common shares will be used for general corporate purposes.
Jennings Capital Inc. of Calgary will act as Corridor's exclusive agent with respect to the private placement.
This press release contains certain forward looking statements relating to, but not limited to, Corridor's operations, anticipated financial performance, business prospects and strategies, including expectations relating to production levels; capital expenditure programs; the quantity of natural gas reserves; projections of market prices; projections of costs; supply and demand for natural gas; expectations regarding the ability to raise capital and to continually add to reserves through exploration and development; and treatment under governmental regulatory regimes. These statements are based on current expectations that involve numerous assumptions regarding factors and risks that could cause actual results to vary materially, including, without limitation to, the following factors: risks associated with oil and gas exploration, financial risks, substantial capital requirements, bank financing, government regulation, environmental, prices, markets and marketing, dependence on key personnel, dependence on Potash Corporation of Saskatchewan, Inc., availability of drilling equipment and access, risks may not be insurable, management of growth, expiration of licenses and leases, reserves estimates, seasonality, competition, conflicts of interest, Kyoto Protocol, issuance of debt, title to properties and hedging. There is no representation by Corridor that actual results achieved will be the same in whole or in part as those set out in the forward looking information. Furthermore, the forward looking statements contained in this press release are made as of the date hereof, and Corridor undertakes no obligation, except as required by applicable securities legislation, to update publicly or to revise any of the included forward looking statements, whether as a result of new information, future events or otherwise.
