CALGARY, Oct. 30 /CNW/ - Fairmount Energy Inc. ("Fairmount") (FMT - TSX
Venture Exchange) announces that it has requested and received a modification
to the terms of its Normal Course Issuer Bid from the TSX Venture Exchange in
accordance with the normal course issuer bid procedures under Canadian
securities laws.
Pursuant to the TSX Venture Exchange rules, Fairmount was previously
limited to purchasing for cancellation up to 344,877 of its common shares in
any 30 day period and 1,392,955 of its common shares in the one year period
ending March 20, 2009. Fairmount applied and received approval to remove this
30 day period limitation from the TSX Venture Exchange.
Under the terms of Fairmount's Normal Course Issuer Bid, Fairmount may
purchase for cancellation up to a maximum of 874,955 of its common shares in
the 141 day period ending March 20, 2009. Fairmount has previously purchased
for cancellation 518,000 common shares under the Normal Course Issuer Bid
since it was first approved on 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.
Fairmount currently has 16,725,889 Common Shares outstanding.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
