Halo Resources Ltd.

Halo Resources Ltd.

September 29, 2009 09:00 ET

Halo Provides Exploration and Corporate Update

TORONTO, ONTARIO--(Marketwire - Sept. 29, 2009) - Lynda Bloom, President and CEO of Halo Resources Ltd. ("Halo") (TSX VENTURE:HLO)(FRANKFURT:HRL) is pleased to announce that field crews have recently completed six weeks of intense geological mapping, prospecting and sampling on the West Red Lake Gold Property. Much of the work was concentrated on the Bridget Lake North showing to finalize winter drill targets. The showing is part of the Red Lake Gold Partnership property, a wholly-owned subsidiary of Goldcorp Inc. ("Goldcorp").

Assays are pending for over 300 channel samples collected on the Red Lake Gold Partnership Property, as well as adjoining claims held under option with Tribute Minerals Inc. and Rubicon Minerals Corporation.

Halo has entered into a non-binding letter of intent regarding an option and potential joint venture with an arm's length third-party to explore and potentially exploit a portion of the Sherridon Copper-Zinc VMS Property, Manitoba. The mineral claims are held 100% by Halo and represent an area less than 5% of the total land holdings under Halo's control. Subject to satisfactory due diligence, definitive agreements are anticipated within 60 days.

Halo has also entered into an agreement with Loewen, Ondaatje, McCutcheon Limited (the "Agent") to raise a total of $2 million, including up to $1 million through the issuance of common shares of the Company which qualify as "flow-through" shares, at a price of $0.05 per flow-through share; and through issuance of units of the Company (the "Units") at a price of $0.05 per Unit. Each Unit consisting of one common share (a "Common Share") of the Company and one Common Share purchase warrant (a "Warrant"). Each whole Warrant entitling the holder to purchase one Common Share of the Company for two years after closing of the Private Placement, at an exercise price of $0.075 per share in the first year and, thereafter, at a price of $0.10 per share in the second year. The size of the Private Placement, with the approval of the Company, may be increased by 20%.

The Company will pay the Agent a cash commission equal to 7% of the proceeds from the sale of the flow-through shares and Units. In addition, the Agent will receive compensation warrants equal to 7% of the number of securities sold under the Private Placement, with each of the Agent's Compensation warrant entitling the holder to acquire one Unit and/or one flow-through share of the Company at the issue price offered under the Private Placement, for a period of 24 months following the Closing Date. All securities issued in connection with the private placement will be subject to a minimum four month hold period.

The funds from the Private Placement will be used for exploration on the Company's properties and for general corporate purposes.

The Private Placement is scheduled to close by October 15, 2009 or by such other date to be agreed to by the Company and the Agent (the "Closing Date") and is subject to the approval of the TSX Venture Exchange.

Except for statements of historical fact contained herein, the information in this press release constitutes "forward-looking information" within the meaning of Canadian securities law. Other than statements of historical fact, all statements are "Forward-Looking Statements" that involve such various known and unknown risks, uncertainties and other factors. There can be no assurance that such statements will prove accurate. Results and future events could differ materially from those anticipated in such statements. Readers of this press release are cautioned not to place undue reliance on these "Forward-Looking Statements". 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 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

  • Halo Resources Ltd.
    Lynda Bloom
    President & CEO
    416-368-7045 or Toll Free: 1-866-841-0068
    Halo Resources Ltd.
    Marc Cernovitch
    416-368-7045 or Toll Free: 1-866-841-0068
    416-368-9805 (FAX)