|February 24, 2015|
Blackheath Closes Second Tranche of Private Placement, Provides Update on Covas Tungsten Project
Blackheath Resources Inc. (TSXV: BHR) (the "Company") is pleased to announce that it has closed the second tranche of its previously announced non-brokered private placement. The Company is also pleased to provide an update on its work on the Covas Tungsten Project.
The Company raised gross proceeds of $221,000 in the second tranche of its private placement through the issuance of 552,500 units at a price of $0.40 per unit (the "Units"). Each Unit comprises one common share of the Company and one-half of one non-transferable common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant entitles the holder to purchase one additional common share of the Company at an exercise price of $0.53 per share for a period of 30 months from the closing of the private placement. In the second tranche, the Company paid cash finders' fees totalling $12,000.
James Robertson, Chief Executive Officer and a director of the Company, purchased 52,500 Units in the second tranche, representing approximately 3% of the Units sold in both tranches of the private placement.
The Company closed the first tranche of $500,000 on December 17, 2014 and has raised a total of $721,000 through the issue of 1,802,500 Units in the combined first and second tranches. The Company may choose to close one or more additional tranches of the private placement to raise a total of up to $2,000,000.
Blackheath intends to expend the proceeds raised from the Private Placement on exploration of its past-producing tungsten projects in northern Portugal, including Covas, Borralha, Bejanca, Adoria and Vale das Gatas and for general working capital purposes.
All securities issued or issuable under this tranche of the private placement are subject to a hold period under applicable Canadian securities laws expiring on June 25, 2015, in addition to such other restrictions as may apply under applicable securities laws outside Canada.
Update on Covas Tungsten Project
The Company is pleased to report that the Phase 3 diamond drill program on the Covas Tungsten Project has now been completed. Seventeen shallow diamond drill holes, totaling 1,337 metres were drilled in 6 different target areas: Lapa Grande, Muito Seco, Boundary, Castelo, Valdarcas and Telheira North.
The Phase 3 drill program, combined with previous drill campaigns and historic drill data, will allow Blackheath Resources to issue a National Instrument 43-101 Standards of Disclosure for Mineral Projects compliant resource at the Covas Tungsten Project. Gary Giroux P.Eng. M.A.Sc. of Giroux Consultants Ltd. and Barry Price, M.Sc., P.Geo. of B.J Price Geological Consultants Inc. are working to prepare a current resource estimate and a NI 43-101 compliant technical report.
James Robertson, CEO of Blackheath Resources, stated, "Our goal of upgrading the non-compliant historical resource to a current compliant resource is almost complete and will be released shortly."
Covas is a past-producing open pit and shallow underground tungsten mine and remaining historical resources on the property have been estimated at 922,900 tonnes of 0.78% WO3 (tungsten trioxide) by Union Carbide Corp. in 1980, based on work including 329 drill holes on the property. Mineralization is open to expansion. The price of tungsten has increased significantly in recent years and is currently approximately $280 per metric tonne unit (10kg) of contained tungsten trioxide (These resources are historical in nature, prepared by Union Carbide Corp. in 1980 and are considered relevant. However, neither the Company nor a qualified person has done sufficient work to classify the historical estimates as current mineral resources and the Company is not considering the historical estimates as current mineral resources, and the historical estimate should not be relied upon.)
The Covas property, which was awarded a three year Experimental Mining Licence (August 20, 2013) is located about 100 kilometres north of Porto, Portugal's second largest city. Blackheath holds the property under an option from Avrupa Minerals Ltd. under a previously announced amendment to the Covas Joint Venture earn-in agreement (see news release of May 12, 2014).
Blackheath Resources Inc. is listed on the TSX Venture Exchange, and is focused on tungsten exploration and development in Portugal. The Company holds the past-producing Covas, Borralha, Vale das Gatas and Adoria tungsten projects and also the Bejanca tungsten/tin project. Management of Blackheath has previous experience in tungsten mining operations in Portugal through Primary Metals Inc., the operator of the Panasqueira Tungsten Mine from 2003 to 2007. Further information about the company's activities may be found at www.blackheathresources.com and under the company's profile at www.sedar.com
ON BEHALF OF THE BOARD
James Robertson, P. Eng., CEO and Director
For further information contact:
Alexander Langer at 604-684-3800 or
Andrew Raca, VSA Capital Limited at +44 (0)20 3005 5004 or
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 release.
Caution Regarding Forward-Looking Information
This news release includes certain forward-looking statements or information. All statements other than statements of historical fact included in this release, including, without limitation, statements regarding plans for the completion of a private placement financing and other future plans and objectives of the Company are forward-looking statements that involve various risks and uncertainties. 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. Important factors that could cause actual results to differ materially from the Company's plans or expectations include market prices, availability of capital and financing, general economic, market or business conditions, regulatory changes, timeliness of government or regulatory approvals and other risks detailed herein and from time to time in the filings made by the Company with securities regulators. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise except as otherwise required by applicable securities legislation.
You can view the Next News Releases item: Tue Mar 31, 2015, Blackheath Announces Maiden Tungsten Resource at Covas: 449,800 MTUs WO<html><sub>3</sub></html> Indicated Resources and 767,100 MTUs WO<html><sub>3</sub></html> Inferred Resources
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