NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION
IN THE UNITED STATES
Balmoral Resources Ltd. ("Balmoral"
or the "Company") (TSX VENTURE:BAR)
announces that it has entered into an agreement with Canaccord
Genuity Corp. (the "Agent"), under which
the Agent has agreed to offer $3,025,000 in securities of the Company, on a
"commercially best efforts" flow-through private placement basis
(the "Offering"). The Offering will consist of up to 2,750,000
flow-through common shares of the Company at a price of $1.10 per
flow-through common share. The share price of the Offering represents a 21%
premium to the 20-day VWAP of Balmoral's common
shares for the period preceding the signing of the agreement and a 15%
premium to today's closing price.
The proceeds raised from the Offering will be used to continue the
exploration of the Company's Canadian gold projects, including the Martiniere, Grasset, Fenelon
and Detour East Projects, located along the Detour Gold Trend in the province
of Quebec. Closing of the Offering is anticipated to occur on or before
November 3, 2011. Closing of the Offering is subject to receipt of regulatory
approvals, including the approval of the TSXV for the Offering, and the
entering into by the Company and the Agent of a definitive agency agreement.
The securities issued will be subject to a four month hold period under
applicable securities laws in Canada.
In consideration of the Agent's services, the Company has agreed to pay the
Agent a cash commission of 6% of the gross proceeds of the Offering.
This news release does not constitute an offer to sell or a solicitation 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 benefit of a U.S. person absent an exemption from
the registration requirements of such Act.
About Balmoral Resources - www.balmoralresources.com
Balmoral is a Vancouver-based precious metal
exploration and development company focused on district scale gold
opportunities in North America. With a philosophy of creating value through
the drill bit and with a focus on proven productive precious metal belts, Balmoral is following an established formula with a goal
of maximizing shareholder value through discovery.
On behalf of the board of directors of BALMORAL RESOURCES LTD.
Darin Wagner, President and CEO
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 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, and business and financing plans and
trends, 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
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 Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this press release.
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