Corridor & $20 Million Underwritten Financing
Halifax, Nova Scotia, April 5, 2006, (TSX - CDH): - Corridor Resources Inc. (CDH - TSX-V) (the "Corporation") is pleased to announce today that it has entered into an agreement, on an underwritten basis, with Jennings Capital Inc. and Dominick & Dominick Securities Inc. (the "Underwriters") for an offering of 2,653,061 common shares of the Corporation (the "Common Shares") at a price of $4.90 per Common Share and 1,206,896 flow-through common shares of the Corporation (the "Flow-Through Common Shares") at a price of $5.80 per Flow-Through Common Share to raise gross proceeds of approximately $20 million.
At the option of the Underwriters, prior to filing the final prospectus, the offering may be increased by up to 4,081,633 Common Shares at a price of $4.90 per Common Share for further gross proceeds of approximately $20,000,000, which would increase the offering to approximately $40,000,000 if fully exercised.
The issue will be an underwritten public offering in British Columbia, Alberta, Ontario, New Brunswick and Nova Scotia by way of a short form prospectus, and in Europe, and in the U.S. on a private placement basis pursuant to exemptions from the registration requirements pursuant to Rule 144A of the United States Securities Act of 1933, as amended.
The financing is scheduled to close on or about April 27, 2006 and is subject to regulatory approval and completion of definitive documentation. Proceeds from the offering will be used to fund ongoing exploration and development activities primarily on the McCully property in New Brunswick, long-lead items for the Corporation's proposed gas processing facility and infrastructure and for general corporate purposes.
Corridor is a junior oil and gas exploration and production 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.
