Gastem Inc.

Gastem Inc.

March 19, 2007 08:31 ET

Gastem Closes $2,999,750 Private Placement

MONTREAL, QUEBEC--(CCNMatthews - March 19, 2007) - Gastem (TSX VENTURE:GMR) is pleased to announce that it has today closed a private placement financing. The financing was a brokered private placement for 4,615,000 units at a price of $0.65 cents per unit for gross proceeds of up to $2,999,750. Each unit consisted of one common share of the Company and one-half of one share purchase warrant, with each whole warrant entitling the holder to purchase one common share of the Company at a price of $0.80 per share for a period of eighteen months from the date of closing. There were no flow-through shares related to this financing.

The offering was made to accredited investors, within the meaning of National Instrument 45-106, in the Provinces of British Columbia, Ontario and Quebec. The closing 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 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 $0.65, are payable by the Company to Bearbeech Capital Partners Corp.

The Company intends to use the net proceeds of the private placements for exploration, drilling and development of the Company's St. Lawrence Lowlands properties, for the Gaspe properties, and for the recently acquired interest in the Amber Bank Property, West Virginia and as general exploration and working capital.

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

Contact Information

  • Gastem Inc.
    Raymond Savoie or Marc-Andre Lavoie
    Bearbeech Capital Partners Corp.
    Campbell Beecher