NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
(Vancouver, October 16, 2019) - Balmoral Resources Ltd. (TSX:BAR) ("Balmoral" or the "Company") announces that it has increased its previously announced (see NR19-18, Oct. 11, 2019) non-brokered private placement (the “Offering”) to $2.35 million. The Offering will now consist of hard dollar units, National flow-through shares and Quebec flow-through shares (the latter previously announced). Under the terms of the Offering the Company has agreed to sell to subscribers in the province of Quebec up to 7,173,913 Quebec flow-through common shares of the Company at a price of $0.23 per Quebec flow-through common share (the “Quebec Flow-Through Offering”). The Company has also agreed to sell up to 1,315,789 National flow-through common shares at a price of $0.19 per National flow-through common share (the “National Flow-Through Offering”) and 2,647,058 units priced at $0.17 per unit, with each unit consisting of one common share and one half (1/2) common share purchase warrant (the “Unit Offering”). Each whole warrant will entitle the holder to purchase one additional common share at a price of $0.30 for a period of 18 months from the closing of the Offering.
The gross proceeds of the Offering will be used by the Company for the exploration of the Company’s Canadian exploration properties, principally those located in the province of Quebec, and for general working capital purposes. The National and Quebec Flow-Through Offerings are anticipated to close on or before October 30, 2019 and the Unit Offering on or before November 8, 2019.
Closing of the Offering is subject to certain conditions including the receipt of regulatory approvals, such as the acceptance of the Offering by the Toronto Stock Exchange. The shares and warrants to be issued under the Offering will be subject to a four month hold period from the Closing Date under applicable securities laws in Canada.
In connection with the Offering, Balmoral has engaged Laurentian Bank Securities Inc. to act as its exclusive financial advisor for the Offering. The Company may pay Finder’s Fees in accordance with the policies of the TSX in conjunction with the closing of the Offering.
This news release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein in the United States. The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to the account or benefit of a U.S. person absent an exemption from the registration requirements of such Act.
About Balmoral Resources Ltd. - www.balmoralresources.com
Balmoral is a multi-award winning Canadian-focused exploration company actively exploring a portfolio of gold and base metal properties located within the prolific Abitibi greenstone belt. The Company’s flagship, 1,000 km2 Detour Gold Trend Project hosts the resource stage Bug and Martiniere West gold deposits and the Grasset nickel-copper-cobalt-PGE deposit. Employing a drill focused exploration style in one of the world’s preeminent mining jurisdictions, Balmoral is following an established formula with a goal of maximizing shareholder value through the discovery and definition of high-grade, Canadian gold and base metal assets.
On behalf of the board of directors of
BALMORAL RESOURCES LTD.
President and CEO
John Foulkes, Vice-President, Corporate Development
Tel: (604) 638-5815 / Toll Free: (877) 838-3664
This press release contains forward-looking statements and forward-looking information (collectively, “forward looking statements”) within the meaning of applicable Canadian and United States securities laws. All statements, other than statements of historical fact, included herein, including statements regarding the anticipated closing date and approval of the Offering by the Toronto Stock Exchange, the existing funding of the Company being sufficient, the anticipated content, commencement, duration and cost of exploration programs, anticipated exploration program results, the discovery and delineation of mineral deposits/resources/reserves, the timing of the receipt of assay results, the Company’s proposed use of proceeds, business and future financing plans, are forward-looking statements. Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions or are those which, by their nature, refer to future events. Although the Company believes that such statements are reasonable, there can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. The Company cautions investors that any forward-looking statements by the Company are not guarantees of future performance, and that actual results may differ materially from those in forward-looking statements. Important factors that could cause actual events and results to differ materially from the Company’s expectations include those related to weather, equipment and staff availability; related to the existing funding of the Company being sufficient, performance of third parties; risks related to the exploration stage of the Company’s projects; market fluctuations in prices for securities of exploration stage companies and in commodity prices; and uncertainties about the availability of additional financing; risks related to the Company’s ability to identify one or more economic deposits on the properties, and variations in the nature, quality and quantity of any mineral deposits that may be located on the properties; risks related to the Company’s ability to obtain any necessary permits, consents or authorizations required for its activities on the properties; and risks related to the Company’s ability to produce minerals from the properties successfully or profitably. Trading in the securities of the Company should be considered highly speculative. All of the Company’s public disclosure filings may be accessed via www.sedar.com and readers are urged to review these materials, including the latest technical reports filed with respect to the Company’s mineral properties.
This press release is not, and is not to be construed in any way as, an offer to buy or sell securities in the United States.