(TSX - CDH): Corridor Resources Inc.
(“
Corridor” or the “
Company”)
today announced that the Toronto Stock Exchange
(“
TSX”) has accepted its notice of intention to
proceed with a normal course issuer bid (the
“
Bid”)
Pursuant to the Bid, Corridor may purchase up to
6,803,118 common shares of Corridor ("Common
Shares"), representing approximately 10% of its public
float as at August 14, 2018. As at August 14, 2018, Corridor
had 88,655,299 issued and outstanding Common Shares, including a
public float of 68,031,186 Common Shares.
Corridor is commencing the Bid because the Board
of Directors of Corridor believes that the current market price of
its Common Shares does not fully reflect the underlying value of
the Company. Decisions regarding the timing of future
purchases of Common Shares will be based on market conditions,
share price and other factors. The Company believes that, at
such times, the purchase of Common Shares would be an appropriate
use of corporate funds in the best interests of the Company. Such
purchases are expected to benefit all remaining shareholders by
increasing their equity interest in the Company. As of June
30, 2018, the Company had approximately $56.1 million of cash on
hand available to support decisions to purchase Common Shares under
the Bid.
The period during which Corridor is authorized
to make purchases under the Bid commences on August 23, 2018 and
ends on August 22, 2019 or such earlier date on which the maximum
number of Common Shares are purchased under the NCIB or the Bid is
terminated at Corridor's election.
All Common Shares will be purchased on the open
market through the facilities of the TSX or through alternative
Canadian trading systems or by such other means as may be permitted
by the TSX or under applicable securities laws. Other than
purchases made under block purchase exemptions, Corridor may
purchase up to 14,674 Common Shares on the TSX during any trading
day, which represents approximately 25% of 58,696, being the
average daily trading volume on the TSX for the most recently
completed six calendar months prior to the TSX's acceptance of the
notice of the NCIB. RBC Dominion Securities Inc. will conduct
the bid on behalf of Corridor. Any Common Shares purchased
under the Bid will be cancelled.
Corridor is a Canadian junior resource company
engaged in the exploration for and development and production of
petroleum and natural gas onshore in New Brunswick and offshore in
the Gulf of St. Lawrence. Corridor currently has natural gas
production and reserves in the McCully Field near Sussex, New
Brunswick. In addition, Corridor has a shale gas prospect in
New Brunswick and an offshore conventional hydrocarbon prospect in
the Gulf of St. Lawrence.
For further information: Contact: Steve
Moran, President and CEOCorridor Resources Inc.#301, 5475 Spring
Garden Road, Halifax, Nova Scotia B3J
3T2
Ph: (902) 429-4511 F: (902) 429-0209 Web: www.corridor.ca
Forward Looking Statements
This press release contains certain
forward-looking statements and forward-looking information
(collectively referred to herein as “forward-looking statements”)
within the meaning of Canadian securities laws. All statements
other than statements of historical fact are forward-looking
statements. Forward-looking information typically contains
statements with words such as “anticipate”, “believe”, “plan”,
“continuous”, “estimate”, “expect”, “may”, “will”, “project”,
“should”, or similar words suggesting future outcomes. In
particular, this press release contains forward-looking statements
pertaining to Corridor’s intention to commence a Bid and the
timing, methods and quantity of any purchases of Common Shares
under the Bid.
Undue reliance should not be placed on
forward-looking statements, which are inherently uncertain, are
based on estimates and assumptions, and are subject to known and
unknown risks and uncertainties (both general and specific) that
contribute to the possibility that the future events or
circumstances contemplated by the forward-looking statements will
not occur. There can be no assurance that the plans,
intentions or expectations upon which forward-looking statements
are based, will in fact be realized. Actual results will
differ, and the difference may be material and adverse to the
Corporation and its shareholders. Forward-looking statements are
based on the Corporation’s current beliefs as well as assumptions
made by, and information currently available to, the Corporation
concerning anticipated financial performance, business prospects,
strategies, regulatory developments, future natural gas and oil
commodity prices, exchange rates, future natural gas production
levels, the ability to obtain equipment in a timely manner to carry
out development activities, the ability to market natural gas
successfully to current and new customers, the impact of increasing
competition, the ability to obtain financing on acceptable terms,
the ability to add production and reserves through development and
exploration activities, and the terms of agreements with third
parties such as the Corporation’s hedging contracts. Although
management considers these assumptions to be reasonable based on
information currently available to it, they may prove to be
incorrect. By their very nature, forward-looking statements
involve inherent risks and uncertainties (both general and
specific) and risks that forward-looking statements will not be
achieved. These factors include, but are not limited to,
risks associated with oil and gas exploration, development and
production, operational risks, development and operating costs,
substantial capital requirements and financing, volatility of
natural gas and oil prices, government regulation, environmental,
hydraulic fracturing, third party risk, dependence on key
personnel, co-existence with mining operations, availability of
drilling equipment and access, variations in exchange rates,
expiration of licenses and leases, reserves and resources
estimates, trading of common shares, seasonality, disclosure
controls and procedures and internal controls over financial
reporting, competition, conflicts of interest, issuance of debt,
title to properties, hedging, information systems, litigation and
aboriginal land and rights claims. Further information
regarding these factors may be found under the heading “Risk
Factors” in the Corporation’s Annual Information Form for the year
ended December 31, 2017. Readers are cautioned that the foregoing
list of factors that may affect future results is not
exhaustive.
The forward-looking statements contained in this
press release are made as of the date hereof and Corridor does not
undertake any obligation to update publicly or to revise any of the
included forward-looking statements, except as required by
applicable law. The forward-looking statements contained herein are
expressly qualified by this cautionary statement.