Balmoral Increases Flow-Through Private
Placement to $4,015,000
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 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