Corridor Closes $40 Million Financing
Not For Release, Publication Or Distribution In Or Into The United States
Halifax, Nova Scotia, April 27, 2006, (TSX - CDH): - Corridor Resources Inc. (CDH:TSX) (the "Corporation") is pleased to announce that it has closed its financing of 6,734,694 common shares at a price of $4.90 per common share and 1,206,896 flow-through common shares at a price of $5.80 per share for aggregate gross proceeds of approximately $40 million.
Jennings Capital Inc. and Dominick and Dominick Securities Inc. were the underwriters in respect of the short form prospectus offering and received a 6% cash commission of the gross proceeds.
The net proceeds of the offering will be used to fund the Corporation's ongoing exploration and development activities, primarily on the McCully Field in New Brunswick, long-lead items for the Corporation's proposed midstream facilities required to connect the natural gas wells in the McCully Field to the Maritimes & Northeast Pipeline 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 Québec 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.
