BlackPearl Resources Inc.

BlackPearl Resources Inc.

April 19, 2010 08:00 ET

BlackPearl Announces $26 Million Bought Deal Equity Financing

CALGARY, ALBERTA--(Marketwire - April 19, 2010) -


BlackPearl Resources Inc. ("BlackPearl" or the "Company") (TSX:PXX) (FIRST NORTH:PXXS) is pleased to announce that it has entered into an agreement with a syndicate of underwriters co-led by FirstEnergy Capital Corp. and GMP Securities L.P., and including RBC Capital Markets, Canaccord Financial Ltd., Macquarie Capital Markets Canada Ltd., Peters & Co. Limited and TD Securities Inc. (the "Underwriters") pursuant to which the Underwriters have agreed to purchase for resale to the public, on a bought deal basis, 9,000,000 common shares (the "Common Shares") at $2.90 per Common Share for aggregate gross proceeds of $26.1 million.

In addition, the Underwriters have been granted an over-allotment option, which may be exercised in whole or in part up to 30 days after closing of the offering (the "Closing"), to purchase up to 1,350,000 additional Common Shares at a price of $2.90 per Common Share. If the over-allotment is fully exercised, gross proceeds from the offering will be approximately $30 million.

The Corporation intends to use the net proceeds to replenish working capital as a result of the recent acquisition of an additional working interest at its Blackrod SAGD project, accelerate development activities at Onion Lake and other areas, and for general corporate purposes.

The offering is scheduled to close on or about May 11, 2010 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the Toronto Stock Exchange and the securities regulatory authorities.

This news release does not constitute an offer to sell or a solicitation of any offer to buy the securities in the United States. The securities offered have not been and will not be registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements of such Act.

BlackPearl's Certified Advisor on First North is E. Öhman J:or Fondkommission AB.

Company Registration Number: 409596-1

Forward-Looking Statements

This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "believe", "plan", "continuous", "estimate", "expect", "may", "will", "project", "should", "predict", "targeting", "seek", "intend", "could", "potential" or similar words. In particular, this press release containing forward-looking statements regarding the anticipated use of proceeds of the offering and the expected closing date of the offering. Since forward looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ, and the difference may be material and adverse to the Corporation and its shareholders. The closing of the offering could be delayed if the Company is not able to obtain the necessary regulatory and stock exchange approvals in a timely manner. The offering will not be completed at all if these approvals are not obtained or some other condition to the closing is not satisfied. The intended use of the net proceeds of the offering may change if the board of directors and management determine that it is in the Company's best interests to deploy the proceeds for some other purpose. The Company believes the expectations and assumptions reflected in those forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon.

The forward-looking statements and information contained in this press release are made as of the date hereof and the Company undertakes no obligations to update publicly or otherwise any forward-looking statements and information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

Contact Information

  • BlackPearl Resources Inc.
    John Festival
    President and Chief Executive Officer
    (403) 215-8313
    BlackPearl Resources Inc.
    Don Cook
    Chief Financial Officer
    (403) 215-8313