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THE UNITED STATES OF AMERICA./
CALGARY, Nov. 15 /CNW/ - Fairmount Energy Inc. ("Fairmount" or the "Corporation") (TSX-V: FMT) announces that it has completed its previously announced private placement financing. The total gross proceeds of the financing, which includes the exercise in full of the underwriters' option, were $5,000,800, resulting in the issuance of 3,572,000 common shares on a flow-through basis ("Flow-Through Shares") at a price of $1.40 per Flow-Through Share. The underwriting syndicate led by Dundee Securities Corporation and including Acumen Capital Finance Partners Limited, GMP Securities L.P. and Blackmont Capital Inc. were paid a cash commission equal to 6% of the gross proceeds.
Directors, officers and employees of the Corporation, together with their spouses, acquired an aggregate of 296,500 Flow-Through Shares pursuant to the private placement. The Flow-Through Shares are subject to a four month hold period, expiring on March 16, 2008. Fairmount now has outstanding 17,243,889 Common Shares, as well as performance warrants and options entitling the holders to acquire an aggregate of up to a further 1,845,803 Common Shares.
The gross proceeds from the sale of the Flow-Through Shares will be used to incur eligible Canadian Exploration Expenses as defined in the Income Tax Act (Canada) which will be renounced in favor of the subscribers for the 2007 taxation year.
The Flow-Through Shares have not been and will not be registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of such Act.
The TSX Venture Exchange Inc. does not accept responsibility for the
adequacy or accuracy of this release.
Not for distribution to U.S. newswire services or for dissemination in the United States of America.
ADVISORY: This press release contains forward-looking statements. More particularly, this press release contains statements concerning the anticipated use of the proceeds of the offering.
Although Fairmount believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them because Fairmount can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties.
The forward-looking statements contained in this press release are made as of the date hereof and Fairmount undertakes no obligations to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.