BE Resources Inc.
TSX VENTURE : BER

BE Resources Inc.

May 06, 2010 08:30 ET

BE Resources Engages MGI Securities Inc.

TORONTO, ONTARIO--(Marketwire - May 6, 2010) -

THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

BE Resources Inc. (TSX VENTURE:BER) ("BE" or the "Company") is pleased to announce it has engaged MGI Securities Inc. ("MGI" or the "Agent") of Toronto, Ontario to arrange a brokered private placement financing of units (the "Units") of the Company. 

The private placement of Units will consist of an offering of up to 10,000,000 Units at a price of $0.30 per Unit, for aggregate gross proceeds of up to $3,000,000. Each Unit will be comprised of one common share in the capital of the Company (a "Common Share") and one-half of one Common Share purchase warrant (a "Warrant"). Each full Warrant will entitle the holder thereof to purchase one Common Share for a period of two years after the closing of the offering at an exercise price of $0.50 per Common Share. Completion of the private placement is subject to a number of factors including TSX Venture Exchange approval.

The proceeds of the private placement will be used by the Company to fund drilling activities at its Warm Springs property and for general working capital purposes.

BE has commenced preparation work for drilling its Warm Springs property which is expected to begin shortly. The initial preparation consists of installation of monitoring points and implementation of the amended monitoring plan. On April 28 2010, AMEC Earth and Environmental Inc., WDC Exploration, Marron and Associates along with a local reclamation firm, kicked off the monitoring program by marking the monitor well locations in anticipation of drilling. Monitoring wells are anticipated to be installed at the property over the next two weeks. As part of the Warm Springs drilling permit, BE has agreed to conduct monitoring prior to exploration drilling.

"Drilling is estimated to take approximately 3 weeks to complete as the holes are completed and the drill rig moved to the next hole location across the approximate ½ mile diameter structure. Subsequent assay turnaround time is estimated to be 30 days", said David Tognoni, President and CEO of BE.

David Tognoni, P. Geo., BE's President & CEO, is the Qualified Person as defined under National Instrument 43-101 and is responsible for the scientific and technical information discussed and has reviewed this press release.

About Beryllium

Beryllium is a lightweight, high value metal possessing unique mechanical and thermal properties. Accordingly to the U.S. Geological Society, the global beryllium market is estimated at $2 billion+ annually. World beryllium consumption has grown 90% since 2005 and has a very large unrealized potential for growth. Beryllium is 1/3 lighter than aluminum, 6 times stronger than steel, has a very high melting point of 2349 degrees F or 1287 degrees C and is an excellent conductor of electricity. Commercial uses of beryllium include aircraft and military weapons and mass market consumer electronics such as cell phones, ipods and HD televisions.

The U.S. Govt. has classified Beryllium as a 'Strategic and Critical' metal as it is used in many domestic, military and commercial high performance applications. There is a U.S. government recommendation to ensure long-life domestic supplies and development of domestic processing facilities for beryllium. 

About BE Resources Inc.

BE Resources Inc. is a junior mineral exploration company focused on advancing the exploration and development of its Warm Springs beryllium project in New Mexico. For more information please visit BE's website at www.be-res.com.

About MGI Securities Inc.

MGI Securities Inc. is an integrated Canadian investment dealer offering professional wealth management solutions for individual investors, a comprehensive range of specialized services for institutional investors, and corporate finance advisory services for issuers, including mergers and acquisitions, equity underwritings, corporate restructuring, structured financings, market research, and business valuation services. MGI is based in Toronto, with additional offices in Winnipeg, Saskatoon, Calgary and London, Ontario. MGI is a member of IIROC and is a subsidiary of Jovian Capital Corporation (TSX:JOV). MGI has approximately $1.1 billion in client assets under administration.

Disclaimer

Certain statements contained in this news release may contain forward-looking information within the meaning of United States and Canadian securities laws. Such forward-looking information is identified by words such as "estimates", "intends", "expects", "believes","may", "will" and include, without limitation, statements regarding the Company's plan to begin drilling. There is no assurance that the Company will be able to complete a financing, which is necessary for the Company to be able to complete the drilling. Actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include, among others, market conditions and other financing risks, the lack of funds to carry out drilling, metal prices, risks inherent in the mining industry, labour risks, equipment and supply risks, title disputes, regulatory risks and environmental concerns and other factors identified in regulatory filings, including the Company's annual report on Form 10-K for the year ended December 31, 2009. Most of these factors are outside the control of the Company. Investors are cautioned not to put undue reliance on forward-looking information. Except as otherwise required by applicable securities statutes or regulation, the Company expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.

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.

Contact Information

  • MGI Securities
    John A. McMahon
    Investment Banker
    (416) 777-5178
    jmcmahon@mgisecurities.com
    or
    BE Resources Inc.
    David Tognoni
    President & CEO
    575-744-4014