08:18:58 EDT Fri 29 Mar 2024
Enter Symbol
or Name
USA
CA



Balmoral Resources Ltd
Symbol BAR
Shares Issued 102,846,932
Close 2014-10-14 C$ 1.17
Market Cap C$ 120,330,910
Recent Sedar Documents

Balmoral Resources arranges $10.03-million offering

2014-10-15 08:22 ET - News Release

Mr. Darin Wagner reports

BALMORAL ANNOUNCES $10,030,000 MILLION BOUGHT DEAL, FLOW-THROUGH PRIVATE PLACEMENT

Balmoral Resources Ltd. has entered into an agreement with a syndicate of underwriters led by Canaccord Genuity Corp., pursuant to which the underwriters will purchase 5.9 million flow-through common shares of the company at a price of $1.70 per flow-through share on a bought-deal private-placement basis for gross proceeds of $10.03-million. The company has also granted the underwriters an option to purchase from the company up to an additional 885,000 flow-through shares through the offering at a price of $1.70 per overallotment 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 ongoing exploration and delineation of our Grasset Ni-Cu-PGE discovery and Martiniere gold system in Quebec," said Darin Wagner, president and chief executive officer of Balmoral. "We will also be positioned to continue our aggressive exploration of the entire 700-plus-square-kilometre Detour trend project throughout 2015."

Closing of the offering is anticipated to occur on or before Nov. 6, 2014. Closing of the offering is subject to receipt of regulatory approvals, including 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 5.0 per cent of the gross proceeds of the offering. The underwriters will also receive broker warrants equal to 4.0 per cent 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.

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