Balloch Resources Ltd.
TSX VENTURE : BAH

November 02, 2005 14:13 ET

Balloch Secures $1 Million Interim Financing

TORONTO, ONTARIO--(CCNMatthews - Nov. 2, 2005) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.

Balloch Resources Ltd. (TSX VENTURE:BAH) is pleased to announce today that it has secured $1 million in interim financing to enable Balloch to continue funding a feasibility study in respect of the Kamoto joint venture assets.

To secure the interim financing, Balloch issued a $1 million promissory note to the lender, an arm's length party. The principal amount of this note is payable in one instalment on November 30, 2005. Should Balloch default in the payment of the principal amount on the maturity date, Balloch shall pay interest at a monthly rate of interest equal to 1%. In consideration of the advance of the principal amount Balloch paid the sum of $15,000 to the lender.

As previously announced on October 19, 2005 Balloch completed a private placement of 14 million subscription receipts of the Company, at a price of $1.25 per subscription receipt for gross proceeds of $17.5 million. Each subscription receipt will entitle the holder to receive one common share of the Company without payment of any additional consideration. The gross proceeds of the offering less the agents' estimated out-of-pocket expenses will be held in escrow and will be released to Balloch upon satisfaction of certain escrow release conditions, in particular the approval of the agreements related to the acquisition of the Kamoto joint venture assets by Balloch's shareholders. Balloch has called a shareholders meeting for November 22, 2005 to approve these agreements, among other items, and expects the release of private placement funds prior to the maturity of the promissory note.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Balloch Resources Ltd.
    Thomas Pladsen
    President and CEO
    (647) 287-3778