Gastem: Private Placement Financing of $5,000,000
March 16 2010 - 10:02AM
Marketwired
Gastem (TSX VENTURE: GMR) announces that it has signed an
engagement letter with Industrial Alliance Securities and Fraser
Mackenzie Limited to act as co-lead agents for a private placement
by Gastem for a flow through share financing of up to $5 million.
Mackie Research Capital Corporation will also participate in the
syndicate of agents for the private placement. Gastem will issue up
to 5,882,353 units at a price of $0.85 per unit. Each unit will
consist of one flow through share and one purchase warrant. Each
warrant will entitle the holder to acquire one additional common
share of Gastem at a price of $1.05 for a period of 18 months
following the closing of the private placement. The private
placement is expected to close on or about March 23rd 2010.
Gastem will grant the co-lead agents an option to increase the
size of the private placement by up to $750,000, exercisable on not
less than one day's notice. If the agent's option is exercised in
full, Gastem will issue a total of 6,764,706 units for gross
proceeds of $5.75 million.
The offering will be made to accredited investors within the
meaning of National Instrument 45-106, in the Provinces of British
Columbia, Alberta, Ontario and Quebec. The securities to be issued
in the private placement will be subject to a four-month hold
period under applicable securities legislation. The private
placement is subject to regulatory approval, including that of the
TSX Venture Exchange. In connection with the private placement,
Gastem will pay the agents a cash commission equal to 7.5% of the
gross proceeds from the sale of the units.
The proceeds from the private placement will be used to finance
admissible exploration programs on Gastem's Quebec properties.
Gastem is an independent oil and gas exploration and development
company based in Montreal. The company holds exploration permits
and rights to 3,135 km(2) in the St. Lawrence Lowlands, the Gaspe
Peninsula and the Magdalen Islands in Quebec as well as properties
in New York State and rights and interests in Appalachia.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Contacts: Gastem David Vincent 514-875-9034
David.Vincent@Gastem.ca