Corridor Announces Closing Of Private Placement
Halifax, Nova Scotia, October 8, 2002: Corridor Resources Inc. (CDH - TSX Venture Exchange) announced today that it has closed its previously announced private placement of $3 million principal amount of 10% Unsecured Convertible Subordinated Notes. The terms of the private placement were amended so that the Notes will mature on October 15, 2007 unless earlier redeemed or converted; and the principal amount of each Note will be convertible into Common Shares of Corridor at the option of the holder at any time on or prior to October 20, 2004 at a conversion price of $1.15 per share and at any time thereafter and prior to maturity or redemption at a conversion price of $1.60 per share.
The net proceeds will be applied to Corridor's share of the costs of Corridor's 50% interest in the pipeline and processing facilities currently under construction to deliver natural gas from the McCully No. 1 and No. 2 gas wells to the potash mill of Potash Corporation of Saskatchewan, located near Sussex, New Brunswick. Jennings Capital Inc. acted as agent for the private placement.
Corridor has also granted to directors and officers options to purchase a total of 1,100,000 common shares at an exercise price of $1.20 per common share.
Corridor is a junior oil and gas exploration company, headquartered in Halifax, Nova Scotia, with interests onshore in New Brunswick, Prince Edward Island and Quebec and offshore in the Gulf of St. Lawrence.
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.
