|November 04, 2015|
Blackheath Increases Private Placement to $600,000 and Closes First Tranche
NOT FOR DISTRIBUTION TO UNITED STATES WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Blackheath Resources Inc. (TSXV: BHR) (the "Company") has increased the size of its previously-announced private placement by $300,000 to an aggregate of $600,000. The increase will allow the Company's largest investor to participate for a meaningful amount of the private placement.
The non-brokered private placement will now consist of a total of 5,000,000 units (the "Units") at a price of $0.12 per Unit for aggregate gross proceeds of up to $600,000 (the "Private Placement"). Each Unit is comprised of one common share of the Company and one non-transferable common share purchase warrant (a "Warrant"). Each Warrant will entitle the holder to purchase one additional common share of the Company at an exercise price of $0.20 per share for a period of 24 months from closing of the Private Placement.
The Company closed the first tranche of the Private Placement on November 4, 2015. The Company raised gross proceeds of $317,100 through the issuance of 2,642,500 Units. An aggregate of 865,000 of the Units were sold to directors and officers of the Company. The Company paid cash finders' fees totalling $5,250 and issued 43,750 finders' warrants, each entitling the holder to purchase one common share of the Company at a price of $0.20 per share for a period of 24 months from the closing of the first tranche of the Private Placement. All securities issued or issuable under the first tranche of the Private Placement are subject to a hold period under applicable Canadian securities laws expiring on March 30, 2016 in addition to such other restrictions as may apply under applicable securities laws outside Canada.
Closing of the second tranche of the Private Placement remains subject to receipt of all necessary regulatory approvals including acceptance from the TSX Venture Exchange. Qualified persons acting as finders in connection with the second tranche of the Private Placement may receive finders' fees in accordance with the policies of the TSX Venture Exchange.
Blackheath intends to expend the proceeds raised from the Private Placement on exploration of its past-producing tungsten projects in northern Portugal, including the Bejanca tin/tungsten project and for general working capital purposes.
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 and Vale das Gatas 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, CEO and Director
For further information please contact Alexander Langer, President, at 604.684.3800 or firstname.lastname@example.org
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.
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.
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