Bacanora Minerals Ltd.
TSX VENTURE : BCN

May 18, 2011 17:18 ET

Bacanora Announces Completion of Financing for $7,056,880 in Gross Proceeds

CALGARY, ALBERTA--(Marketwire - May 18, 2011) -BACANORA MINERALS LTD. (TSX VENTURE:BCN) (the "Corporation" or "Bacanora") is pleased to announce the completion of its recently announced private placement financing, pursuant to which it has issued an aggregate of 14,113,760 units of the Corporation at a price of $0.50 per unit for aggregate gross proceeds of $7,056,880. Each unit consists of one common share and one-half of one common share purchase warrant, with each whole warrant being exercisable into one common share at a price of $0.80 for a period of eighteen (18) months.

It is expected that the proceeds of this offering will be applied to advance the exploration and development of Bacanora's borate properties and, subject to feasibility studies, related activities and positive results, to bring those properties into commercial production. It is important to mention that current resource estimation on the El Cajon Borate Deposit located in Sonora, Mexico reported 11.1 million tonnes of colemanite in total indicated resources, averaging 9.9% B2O3 using a cut off of 8% B2O3 (for further details, please refer to the Corporation's press release dated February 9, 2011).

In addition to the foregoing, the proceeds of the offering will also be used for further exploration drilling and related activities on Bacanora's lithium properties and for general working capital purposes.

Paul Conroy, President and Chief Executive Officer of Bacanora, stated, "we are extremely pleased with the tremendous support that this financing has attracted. Our expectations have been far exceeded and we view this overwhelming interest to be a further positive validation of what we consider to be very exciting mining prospects. With the funds in hand from this financing, we expect to be able to substantially expedite the development of our mining plays and the commercialization of these properties."

Although this offering has been completed on a non-brokered basis, Bacanora has paid compensation consisting of approximately $369,413 in cash commissions and the issuance of 705,688 compensation warrants to eligible parties. Each compensation warrant is exercisable into one common share at a price of $0.80 for a period of 24 months. All of the securities issued pursuant to the private placement are subject to a 4-month hold period in accordance with applicable securities laws and regulatory policies, which will expire on September 19, 2011.

Reader Advisory

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities nor shall there be any sale of securities in any state in the United States in which such offer, solicitation or sale would be unlawful. The securities offered will not be and have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

Except for statements of historical fact, this news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. In particular, forward-looking information in this press release includes, but is not limited to, the use of the net proceeds of the offering. Although we believe that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, performance or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information.

Forward-looking information is based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking information. Some of the risks and other factors that could cause the results to differ materially from those expressed in the forward-looking information include, but are not limited to: general economic conditions in Canada, the United States, Mexico and globally; industry conditions, governmental regulation, including environmental regulation; unanticipated operating events or performance; failure to obtain industry partner and other third party consents and approvals, if and when required; the availability of capital on acceptable terms; the need to obtain required approvals from regulatory authorities; stock market volatility; competition for, among other things, capital, skilled personnel and supplies; changes in tax laws; and the other risk factors disclosed under our profile on SEDAR at www.sedar.com. Readers are cautioned that this list of risk factors should not be construed as exhaustive.

The forward-looking information contained in this news release is expressly qualified by this cautionary statement. We undertake no duty to update any of the forward-looking information to conform such information to actual results or to changes in our expectations except as otherwise required by applicable securities legislation. Readers are cautioned not to place undue reliance on forward-looking information.

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

  • Bacanora Minerals Ltd.
    Paul Conroy
    President and Chief Executive Officer
    (403) 237-6122
    (403) 237-6144 (FAX)