Corridor Announces $3,000,000 Private Placement Of Units
Halifax, Nova Scotia, December 19, 2003: Corridor Resources Inc. (CDH - TSX-V) Corridor announced today that it is proceeding with a private placement of up to 3,000,000 units ("Units") at a purchase price of $1.00 per Unit for gross proceeds of $3,000,000. Each Unit consists of one common share of Corridor and one-half of one common share purchase warrant. Each whole warrant will entitle the holder to purchase one additional common share of Corridor at a purchase price of $1.50 for one year from the date of issue. The Units will be issued pursuant to prospectus exemptions available under applicable securities legislation and will be subject to a four month hold period.
Jennings Capital Inc. has agreed to act as agent in connection with the private placement on a best efforts basis and shall receive, as consideration for its services, cash commission equal to 6% of the gross proceeds.
The net proceeds from the sale of the Units shall be used for exploration and development of Corridor's properties in Atlantic Canada, with particular focus on drilling the next well on Corridor's McCully gas prospect near Sussex, New Brunswick and for general corporate purposes.
The private placement is anticipated to close on or about December 31, 2003 and is conditional upon receiving regulatory approval, including approval of the TSX Venture Exchange.
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.
