|October 15, 2014|
Balmoral Announces $10,030,000 Million Bought Deal, Flow-Through Private Placement
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
(Vancouver, October 15, 2014) - Balmoral Resources Ltd. (TSX:BAR) ("Balmoral" or the "Company") announces that it has entered into an agreement with a syndicate of underwriters led by Canaccord Genuity Corp. (the "Underwriters"), pursuant to which the Underwriters will purchase, 5,900,000 flow-through common shares of the Company (the "Flow-Through Shares") at a price of $1.70 per Flow-Through Share on a bought deal private placement basis for gross proceeds of $10,030,000 (the "Offering"). The Company has also granted the Underwriters an option to purchase from the Company up to an additional 885,000 Flow-Through Shares (the "Over-Allotment Shares" and together with the Flow-Through Shares, the "Offered Securities") through the Offering at a price of $1.70 per Over-Allotment Share, exercisable at least 48 hours prior to the closing date of the Offering.
The proceeds raised from the Offering will be used by the Company for further exploration of its Detour Gold Trend Project and other properties located in the Province of Quebec.
"The financing announced today will allow us to accelerate on-going exploration and delineation of our Grasset Ni-Cu-PGE discovery and Martiniere gold system in Quebec" said Darin Wagner, President and CEO of Balmoral. "We will also be positioned to continue our aggressive exploration of the entire, 700+ square kilometre Detour Trend Project throughout 2015."
Closing of the Offering is anticipated to occur on or before November 6, 2014. Closing of the Offering is subject to receipt of regulatory approvals, including the acceptance of the Offering by the Toronto Stock Exchange ("TSX"). The Offered Securities will be subject to a four month hold period under applicable securities laws in Canada.
In consideration of the Underwriters' services, the Company has agreed to pay the Underwriters a cash commission of 5.0% of the gross proceeds of the Offering. The Underwriters will also receive broker warrants (the "Broker Warrants") equal to 4.0% of the Offered Securities sold pursuant to the Offering. Each Broker Warrant entitles the holder to acquire one common, non-flow-through, share of the Company at a price of $1.45 until the date that is 12 months from 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 Canadian-based discovery company focused on high-grade gold and nickel discoveries on its wholly owned, 700 square kilometre Detour Trend Project in Quebec, Canada. With a philosophy of creating value through the drill bit and a focus on proven productive precious/base metal belts, Balmoral is following an established formula with a goal of maximizing shareholder value through 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
For further information contact:
John Toporowski, Manager, Corporate Development
(604) 638-5815 / Toll Free: (877) 838-3664
Email: [email protected]
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 of the Offering, the use of proceeds of the Offering, size and start date of exploration programs and pace of exploration 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; 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 uncertain nature and interpretation of geophysical models, 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.
Neither the TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this press release.
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