Halo Resources Ltd.
Announces Closing of Offering of
Units and Flow-Through
Common Shares
Toronto, Ontario, May 6, 2008 – Halo Resources Ltd. (“Halo”) (TSXV: HLO,
FSE:HRL) is pleased to announce that it has closed its previously announced
public offering (the “Offering”) of securities for total gross proceeds of
$4,044,971.13. The Company issued 12,331,000 flow-through common shares (the
“Flow-Through Shares”) at $0.25 per Flow-Through Share and 4,094,558 units (the
“Units”) at $0.235 per Unit. Each Unit is comprised of one common share of the
Company and one-half of one common share purchase warrant (the “Warrants”). Each
whole Warrant entitles the holder thereof to acquire one additional common
share of the Company at a price of $0.30 per common share until November 6,
2009. Versant Partners Inc. and Canaccord Capital Corporation acted as agents
(the “Agents”) for the Offering.
Proceeds from the sale of the Flow-Through Shares will be used to incur
Canadian Exploration Expenses which will be renounced to subscribers in respect
of the 2008 taxation year.
The Agents received a cash commission equal to 8% of the gross proceeds
of the Offering and have been granted compensation options entitling the Agents
to purchase, until November 6, 2009, up to 1,231,522 Units, being 7.5% of the
number of Units and Flow-Through Shares sold under the Offering, at an exercise
price of $0.235 per Unit. In addition, the Agents earned a corporate finance
fee of $125,000.
Halo will use the net proceeds of the Offering for exploration of its
Sherridon VMS Mineral property in Manitoba,
its West Red
Lake property in Ontario,
for holding costs at its Duport Property in Ontario and for general corporate purposes.
About Halo Resources Ltd.
Halo is a Canadian-based resource company focused on the acquisition of
near production base and precious base metal deposits. Currently the Company
owns or has an interest in 3 projects: the Sherridon project, which is a
combination of mature and grassroots volcanogenic massive sulphide (VMS)
copper, zinc and gold exploration opportunities; West Red Lake, which is a gold exploration
project; and Duport, which is an advanced stage gold project. The Company is
operated by an experienced management team and backed by a strong network of
mining financiers. The Company’s growth
strategy is to develop a diversified portfolio of advanced mining projects.
For further information, please contact:
Lynda Bloom, President & CEO or Marc Cernovitch, Chairman
Halo Resources Ltd.
Tel: 416-368-7047 Fax:
416-368-9805
Toll Free: 1-866-841-0068 lbloom@halores.com
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release. This news
release presents “forward-looking information” within the meaning of the
applicable Canadian securities laws that involved inherent risks and
uncertainties. Forward-looking
information includes, but is not limited to, information with respect to the
proposed public offering. Generally,
forward-looking information can be identified by the use of forward-looking
terminology such as “plans”, “expects” or “does not expect”, “is expect”,
“budget”, “schedules”, “estimates”, “forecasts”, “intends”, “anticipates” or
“does not anticipate”, or “believes”, or variations of such words and phrases
or state that certain actions, events or results “may”, “could”, “would”,
“might” or “will be taken”, “occur” or “be achieved”. Forward-looking information is subject to
known and unknown risks, uncertainties and other factors that may cause the
actual results, level of activity, performance or achievements of Halo to be
materially different from those expressed or implied by such forward-looking
information, including but no limited to: risks related to financings; risks
related to joint venture operations; actual results of current exploration
activities; conclusions of economic evaluations; changes in project parameters
as plans continue to be refined; future prices of gold and other minerals and
metals; possible variations in ore reserves, grade or recovery rates; failure
of equipment or processes to operate as anticipated; accidents, labour disputes
and other risks of the mining industry; and delays in obtaining governmental
approvals or financing or in the completion of development or construction
activities. Although the management and
officers of Halo Resources Ltd. believe that the expectations reflected in such
forward-looking information are based upon reasonable assumptions and have
attempted to identify important factors that could cause actual results to
differ materially from those contained in forward-looking information, there
may be other factors that cause results not to be as anticipated, estimated or
intended. There can be no assurance that
such information will proved to be accurate, as actual results and future
events could differ materially from those anticipated in such information. Accordingly, readers should not place undue
reliance on forward-looking information Halo does not undertake to update any
forward-looking information referenced herein, except in accordance with
applicable securities laws. Trading in
the securities of Halo Resources Ltd. should be considered highly speculative.
The securities offered have not been registered under the U.S.
Securities Act of 1933, as amended, and may not be offered or sold in the
United States absent registration or an applicable exemption from the
registration requirements. This press release shall not constitute an offer to
sell or the solicitation of an offer to buy nor shall there be any sale of the
securities in any jurisdiction in which such offer, solicitation or sale would
be unlawful.