HALIFAX, Nova Scotia, October 31, 2019 (TSX – CDH): Corridor Resources Inc. (“Corridor or the Company”) today announced that the Board of Directors (“Board”) has commenced a formal process to explore and develop strategic alternatives (the “Strategic Review”) with a view to enhancing shareholder value. Corridor has retained RBC Capital Markets as financial advisor to assist in undertaking the Strategic Review.
Corridor is uniquely positioned due to the significant cash on its balance sheet, no debt and its low decline producing natural gas asset that generates free cash flow. Over the past six months, the Company has received unsolicited indications of interest from parties in respect of potential transactions. While none of these indications are being actively pursued at present, the Board believes this an opportune time to explore a wide range of options to ascertain if it can take advantage of its relative strength, with a focus on increasing shareholder value.
The Strategic Review is intended to explore a comprehensive range of strategic transaction alternatives. These alternatives include, but are not limited to, any one or a combination of the following: opportunities to selectively deploy capital (within the resource sector or otherwise); a disposition of all or substantially all of the Company’s assets; and a merger or other business combination.
Corridor has not set a definitive timetable for the conclusion of its Strategic Review and there can be no assurance that the Strategic Review will result in any transaction or other strategic change or outcome. The Company does not intend to comment further unless and until the Board has approved a specific course of action or the Company has determined further disclosure is required by law.
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 CEO
Corridor Resources Inc.
#301, 5475 Spring Garden Road, Halifax, Nova Scotia B3J 3T2
Ph: (902) 429-4511 F: (902) 429-0209