Gastem Inc.
TSX VENTURE : GMR

Gastem Inc.

December 13, 2006 17:59 ET

Gastem Announces Proposed Private Placements for $2,250,000

MONTREAL, QUEBEC--(CCNMatthews - Dec. 13, 2006) - Gastem (TSX VENTURE:GMR) is pleased to announce that it has entered into an agreement with Bearbeech Capital Partners Corp. for a brokered private placement of up to $1,150,000. The brokered private placement will consist of the Company issuing up to 2,300,000 Units at a price of $0.25 per Unit for gross proceeds of up to $575,000. Each Unit will consist of one common share of the Company and one-half of one share purchase warrant, with each whole warrant entitling the holder thereof to purchase one Common Share of the Company at a price of $0.35 per share for a period of two years from the date of closing. This brokered private placement will also include up to 2,300,000 flow through shares at $0.25 per share for gross proceeds of $575,000. The flow through shares do not carry a half warrant.

The offering will be made to accredited investors, within the meaning of National Instrument 45-106, in the Provinces of British Columbia, Alberta, Ontario and Quebec. The closing is expected to occur on or before December 22nd 2006, and is subject to the receipt of all the required regulatory approvals, including the approval of the TSX Venture Exchange. All the securities issued pursuant to this offering shall be subject to a hold period of four months from the date of closing. A commission equal to 8% of the gross proceeds, as well as broker Unit warrants equal to 10% of issued Units at $0.35, will be payable by the Company to Bearbeech Capital Partners Corp.

The Company is also pleased to announce it is undertaking a non-brokered private placement of up to $1,100,000. This non-brokered private placement will consist of 750 Units at a price of $1,000 per Unit for gross proceeds of $750,000. Each Unit will consist of 4,000 common shares of the Company (or $0.25 per share) and 2,000 share purchase warrants, with each warrant entitling the holder thereof to purchase one Common Share at a price of $0.35 per share for a period of two years from the date of closing. This non-brokered private placement will also include up to 350 Units comprised of 4,000 flow through Shares at a price of $1,000 per Unit (or $0.25 per flow through share) for aggregate gross proceeds of $350,000. The flow through shares do not carry a half warrant.

The non-brokered offering will be made to accredited investors, within the meaning of National Instrument 45-106, in the Provinces of British Columbia, Alberta, Ontario and Quebec. The closing is expected to occur on or before December 20th 2006 and is subject to the receipt of all the required regulatory approvals, including the approval of the TSX Venture Exchange.

The Company intends to use the net proceeds of the private placements for exploration and development of the Company's St. Lawrence Lowlands properties and as general working capital.

The TSX Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy and accuracy of this release.

Contact Information

  • Gastem Inc.
    Raymond Savoie
    President
    514-875-9034