|April 13, 2012|
Blackheath Resources Inc. engages Jordan Capital Markets Inc. for Initial Public Offering
|Blackheath Resources Inc. (the "Company") is pleased to announce that it has engaged Jordan Capital Markets Inc. (the "Agent") as its sole and exclusive agent to act on a commercially reasonable efforts basis in the Company's initial public offering to raise a minimum of $1,500,000 and a maximum of $2,000,000 (the "Offering"). The Offering will comprise a minimum of 6,000,000 and a maximum of 8,000,000 common shares of the Company at a price of $0.25 per share. Completion of the Offering remains subject to a number of conditions, including execution of formal documentation between the Agent and the Company, completion of the Agent's due diligence on the Company and the approval of applicable regulatory authorities.|
In connection with its engagement of the Agent, the Company granted the Agent an option exercisable, subject to applicable regulatory requirements, in whole or in part, from time to time until the date which is 15 business days following the closing of the Offering, to arrange for the issuance and sale of up to an additional 900,000 common shares under the minimum offering and an additional 1,200,000 common shares under the maximum offering (the "Additional Shares"), representing up to 15% of the number of common shares sold under the Offering, at a price of $0.25 per Additional Share.
For acting as agent in connection with the Offering, the Agent will be entitled to receive a commission of 8.0% of the gross proceeds raised in the Offering and options entitling the Agent to purchase 8.0% of the aggregate number of common shares sold under the Offering, at the Offering price, for a period of 18 months from the date of closing of the Offering. In consideration for providing corporate finance services in connection with the Offering, the Agent will be entitled to receive a fee in the amount of $30,000 (plus HST), of which the Company has paid $16,800.00 (including HST) to the Agent. The balance of the corporation finance fee is payable upon completion of the Offering.
The Company will use the net proceeds of the Offering to conduct exploration work on the Company's Covas Tungsten/Gold Project in Portugal, for general and administrative purposes, to pay the costs related to the Offering, and for general working capital.
On behalf of the Board,
James Robertson, CEO, President & Director
For further information contact James Robertson 604.669.8988 or firstname.lastname@example.org
Statements in this press release include certain "forward-looking information". Statements in this news release regarding the terms of the Offering and the Company's use of the proceeds of the Offering contain forward-looking information. Readers are cautioned that actual events may vary from the forward-looking information contained in this news release. Material risk factors that could cause actual results to differ materially from the forward-looking information in this news release include, but are not limited to, changes in market conditions or regulatory requirements applicable to the Offering. The forward-looking information in this news release is based on the assumptions that market conditions and regulatory requirements will not change in any material respect and that the Company will be able to obtain all approvals required for the completion of the Offering. The Company does not assume any responsibility for updating forward-looking information, except as required by law.
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