Business
Fairmount Energy announces exercise of option to increase private placement and updates status of credit facilities
/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES OF AMER...
About this update from Fuerte Metals Corporation
[{"type":"text","content":"\n\n\n\n/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN\n\n\nTHE UNITED STATES OF AMERICA/\n\n\nCALGARY, Nov. 13 /CNW/ - Fairmount Energy Inc. ("Fairmount" or the\n"Corporation") (TSX-V: FMT) announces that pursuant to the private placement\npreviously announced on October 31, 2007, the underwriting syndicate led by\nDundee Securities Corporation and including Acumen Capital Finance Partners\nLimited, GMP Securities L.P. and Blackmont Capital Inc. has exercised their\noption to increase the offering to 3,572,000 common shares on a flow-through\nbasis ("Flow-Through Shares") at a price of $1.40 per share, for aggregate\ngross proceeds of $5,000,800. In consideration of their services, the\nUnderwriters will receive a cash commission on the gross proceeds raised. The\noffering is scheduled to close on November 15, 2007.\n\n\nThe Flow-Through Shares will be issued pursuant to prospectus exemptions\navailable under applicable securities legislation in Alberta, British\nColumbia, Saskatchewan and Ontario. Up to 300,000 Flow-Through Shares may be\npurchased by officers, directors and employees of the Corporation.\n\n\nThe proceeds of the offering will be used to fund the Corporation's\nongoing exploration activities. The gross proceeds from the sale of the\nFlow-Through Shares will be used to incur eligible Canadian Exploration\nExpenses as defined in the Income Tax Act (Canada) which will be renounced in\nfavor of the subscribers for the 2007 taxation year.\n\n\nClosing of the offering is subject to the receipt of all requisite\nregulatory and stock exchange approvals. The shares issued pursuant to the\noffering will be subject to a four-month hold period from the date of the\nclosing of the private placement. The Flow-Through Shares have not been and\nwill not be registered under the U.S. Securities Act of 1933 and may not be\noffered or sold in the United States absent registration or an applicable\nexemption from the registration requirements of such Act.\n\n\nUnder the terms of the Corporation's bank operating and non-revolving\nacquisition and development loans, the Corporation is required to maintain a\nworking capital ratio, adjusted for actual and available borrowings under the\nfacilities of one to one. As at September 30, 2007, the Corporation exceeded\nthe level set out...