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/NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
VANCOUVER, Oct. 14, 2011 /CNW/ - Balmoral Resources Ltd. ("Balmoral" or the "Company") (TSXV: BAR) is pleased to announce that, in connection with its previously announced agreement with Canaccord Genuity Corp. (the "Agent"), under which the Agent agreed to offer up to $3,025,000 in flow-through common shares (the "Offering"), it has increased the Offering from $3,025,000 to up to $4,015,000. The Company has granted the Agent an option to purchase up to an additional 15% of flow-through securities issued through the Offering, at the same price as is applicable to the Underwritten Offering, exercisable 48 hours prior to the Closing Date.
The proceeds raised from the Offering will be used to continue the exploration of the Company's gold projects, including the Fenelon, Martiniere, Grasset and Detour East Projects, located 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 Resources is a Vancouver-based precious metal exploration and development company focused on district scale gold opportunities in politically favourable jurisdictions 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.
"Neither 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 press release is not, and is not to be construed in any way as, an offer to buy or sell securities in the United States.