Lethbridge Herald

Corridor Resources Inc. shares spike



Shares in Halifax-based natural gas producer Corridor Resources Inc. jumped by as much as 50 per cent on Monday after it proposed bringing in a new management team, along with an injection of up to $50 million.

The stock hit a high of $1.32 on the Toronto Stock Exchange, up from its 88-cent close on Friday, after it announced it intended to turn management over to the Calgarybas­ed team that founded Raging River Exploratio­n Inc. and sold it in 2018 to Baytex Energy Corp. in an allstock deal valued at $2.8 billion.

The same team also built and sold previous companies called Wild Stream Exploratio­n Inc. and Wild

River Resources Inc.

If the deal is approved by shareholde­rs, Corridor would be renamed Headwater Exploratio­n Inc., in keeping with the management team’s river name theme.

The transactio­n is to include the non-brokered placement of shares and warrants to buy future shares worth about $20 million from initial investors and a brokered placement of units to raise another $20 million to $30 million.

The management team’s previous companies have been focused on producing oil and gas mainly in Saskatchew­an and Alberta but Corridor’s current natural gas production and reserves are in New Brunswick, Quebec and the Gulf of St. Lawrence.

Former Raging River CEO Neil Roszell said in a news release Corridor’s strategic assets and working capital balance of about $65 million make it an “exceptiona­l” investment opportunit­y.

“The Headwater management team is energized and truly believes that the Corridor platform can lead us into becoming a leading Canadian energy producer,” he said.

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