Corridor Resources Inc.
TSX VENTURE : CDH

Corridor Resources Inc.

April 05, 2006 16:31 ET

Corridor Announces $20 Million Underwritten Financing

HALIFAX, NOVA SCOTIA--(CCNMatthews - April 5, 2006) - This news release is not for dissemination in the United States or to any United States news services.

Corridor Resources Inc. (TSX VENTURE:CDH) (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.

Forward Looking Statements

Certain information regarding the Corporation contained herein may constitute forward-looking statements under applicable securities laws. Such statements are subject to known or unknown risks and uncertainties that may cause actual results to differ materially from those anticipated or implied in the forward-looking statement.

Neither the TSX nor the TSX-V has approved or disapproved of the contents of this news release.

Contact Information

  • Corridor Resources Inc.
    Norman W. Miller
    President
    (902) 429-4511
    (902) 429-0209 (FAX)
    www.corridor.ca