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October 14, 2011 |
CORRECTION FROM SOURCE: Balmoral Increases Flow-Through Private Placement to $4,015,000 |
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 14, 2011) -
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 a revised agreement with Canaccord Genuity Corp. (the "Agent"), under which the Agent has agreed to increase from $3,025,000 to $4,015,000 the offer in securities of the Company, to be placed on a "commercially best efforts" flow-through private placement basis (the "Revised Offering"). The Revised Offering will consist of up to 3,650,000 flow-through common shares of the Company at a price of $1.10 per flow-through common share. The Company has also granted the Agent an option to purchase up to an additional 15% of flow-through securities issued through the Offering, at the same price as is applicable to the Revised Offering, exercisable 48 hours prior to the Closing Date. 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 the October 13, 2011 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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