CALGARY, March 19 /CNW/ - Fairmount Energy Inc. ("Fairmount") (FMT - TSX Venture Exchange) announces that it has filed with the TSX Venture Exchange a Notice of Intention to purchase its common shares from time to time in accordance with the normal course issuer bid procedures under Canadian securities laws.
Pursuant to the issuer bid, Fairmount may purchase for cancellation up to 1,392,955 of its common shares, representing 10% of the outstanding public float of Fairmount, during the 12-month period commencing March 20, 2008. The price which Fairmount will pay for any shares under the normal course issuer bid will be the market price at the time of purchase. The purchases will be made on the open market through the TSX Venture Exchange. The brokerage firm conducting the normal course issuer bid on behalf of Fairmount is Peters & Co. Limited.
Fairmount believes that the purchases of its common shares at recent market prices is a worthwhile investment since recent market prices of its shares do not properly reflect the underlying value of its assets and business. To the extent that Fairmount purchases for cancellation such shares in accordance with the normal course issuer bid, the holdings of the remaining shareholders would represent an increased proportion of the shares outstanding and, all other things remaining equal, are expected to result in an increased net asset value per share.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release. The news
release may contain forward-looking information. Actual future results
may differ materially from those contemplated.