New Issue: Fairmount Energy raises C$3 million in bought-deal stock issue

By Devika Patel

Knoxville, Tenn., Oct. 31 - Fairmount Energy Inc. announced it has entered into an agreement with a syndicate of underwriters for a C$3,000,200 private placement of stock.

The company has sold 2,143,000 flow-through common shares on a bought-deal basis at C$1.40 per share.

Up to 300,000 shares may be bought by insiders.

The underwriting syndicate will be led by Dundee Securities Corp. and includes Acumen Capital Finance Partners Ltd., GMP Securities LP and Blackmont Capital Inc. The underwriters may buy an additional 1,429,000 shares at the same price for another C$2,000,600. They will also receive a cash commission.

Proceeds from the deal, which is expected to close Nov. 16, will be used for exploration.

Based in Calgary, Alta., Fairmount Energy explores for and produces petroleum and natural gas in Western Canada.

Issuer:	Fairmount Energy Inc.
Issue:	Flow-through common shares
Amount:	C$3,000,200
Shares:	2,143,000
Greenshoe:	1,429,000 shares, or C$2,000,600
Price:	C$1.40
Warrants:	No
Underwriters:	Dundee Securities Corp. (lead), Acumen Capital Finance Partners Ltd., GMP Securities LP, Blackmont Capital Inc.
Pricing date:	Oct. 31
Settlement date:	Nov. 16
Stock symbol:	TSX Venture: FMT
Stock price:	C$1.25 at close Oct. 30

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