Corridor Closes $30 Million Financing
Halifax, Nova Scotia, July 26, 2005: Corridor Resources Inc. (CDH - TSX-V) (the "Corporation") is pleased to announce that it has closed the previously announced financing of 10,000,000 Common Shares at a price of $2.40 per Common Share and 2,105,263 flow-through common shares at a price of $2.85 per share for aggregate gross proceeds of approximately $30 million.
Jennings Capital Inc. was the agent in respect of the private placement and received a 6% cash commission of the gross proceeds.
The common shares and the flow-through common shares are subject to a four-month hold period that will expire on November 26, 2005.
The private placement financing was made pursuant to private placement exemptions under applicable securities legislation. The net proceeds of the private placement will be used to fund the Corporation's ongoing exploration and development programs in Eastern Canada, including further exploration and development on the McCully property in New Brunswick and for general corporate purposes.
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.
