Gastem Inc.
TSX VENTURE : GMR

Gastem Inc.

August 17, 2010 16:05 ET

Gastem Closes $2,765,750 Financing

MONTREAL, QUEBEC--(Marketwire - Aug. 17, 2010) - Gastem Inc. ("Gastem") (TSX VENTURE:GMR) is pleased to announce it has closed a marketed offering of units by short-form prospectus for a total of up to 8,510,000 units at a price of $0.325 per unit, for a gross amount of $2,765,750. Each unit consists of one common share and one common share purchase warrant at $0.45 valid for 2 years (the "Offering").

The Offering was conducted through a syndicate of agents led by Industrial Alliance Securities and including Fraser Mackenzie Limited and Mackie Research Capital Corporation (the "Agent"). The Agents exercised their option to purchase units for an additional 15% from 7,400,000 units to 8,510,000 to cover over-allotments. A commission equal to 7.5% of the gross proceeds is payable by the company to Industrial Alliance Securities on behalf of the Agents.

Proceeds of the financing will be used to finance exploration and development work in New York State, specifically on the conventional Oneida Sandstone Formation, and for general operating expenses.

The closing is subject to the receipt of the final approval of the TSX Venture Exchange. 

Gastem is an independent oil and gas exploration and development company based in Montreal. The company holds exploration and storage permits and rights in the St. Lawrence Lowlands, the Gaspe Peninsula and the Magdalen Islands in Quebec as well as rights and interests in New York State and Virginia.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information