Balmoral Resources (BAR-T) June 13, '16 is pleased to announce that it has entered into an agreement with a syndicate of underwriters co-led by Canaccord Genuity Corp. and Mackie Research Capital Corporation, pursuant to which the Underwriters have agreed to place 4,450,000 national flow-through common shares of the Company (the "National FT Shares") at a price of C$0.90 per National FT Share and 1,670,000 Quebec flow-through common shares of the Company (the "Quebec FT Shares") at a price of C$1.20 per Quebec FT Share for aggregate gross proceeds of C$6,009,000 (the " Offering"). In addition, the Company will grant the Underwriters an option (the "Over-allotment Option") to purchase from the Company up to an additional 1,000,000 Flow-Through Shares, in any combination of National FT Shares and/or Quebec FT Shares (the "Over-Allotment Shares" and together with the Flow-Through Shares, the "Offered Securities"), exercisable at least 48 hours prior to the Closing Date (as defined below). The average pricing of the Offering, represents a 25.0% premium to the closing price of the Company's shares on June 13, 2016.
The gross proceeds from the Offering will be used by the Company to accelerate exploration of its Detour Trend Project located in the Province of Quebec and for the exploration of other gold properties held by the Company in Canada.
Closing of the Offering is anticipated to occur on or before June 30, 2016 (the "Closing Date"). 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 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 6.0% of the gross proceeds 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 well-funded, Canadian-based company actively delineating and expanding the high-grade Bug Lake Gold Trend on its wholly owned, 700 square kilometre Detour Trend Project in Quebec, Canada. The Detour Trend Project also hosts Balmoral's Grasset Ni-Cu-Co-PGE deposit as well as numerous other gold and base metal occurrences. Employing an award winning exploration team, Balmoral has a philosophy of creating value through the drill bit. By focusing our efforts in proven productive precious/base metal belts in one of the world's pre-eminent mining jurisdictions, 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.
"Darin Wagner"
President and CEO
SOURCE Balmoral Resources Ltd.
John Foulkes, Vice-President, Corporate Development,
Tel: (604) 638-5815 / Toll Free: (877) 838-3664,
E-mail: jfoulkes@balmoralresources.com |
