Balmoral Resources Ltd.

Balmoral Resources Ltd.

September 21, 2010 09:00 ET

Balmoral Resources Increases Private Placement to $18.0 Million

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 21, 2010) -


Balmoral Resources Ltd. ("Balmoral" or the "Company") (TSX VENTURE:BAR.H) announces that it has amended the engagement letter announced September 7, 2010 (NR10-05) entered into with a syndicate of agents co-led by Haywood Securities Inc. and Raymond James Ltd., and including Canaccord Genuity Corp. (collectively the "Agents"), under which the Agents have agreed to offer, on a "commercially best efforts" private placement basis $18,000,000 in securities of the Company (an increase of $3 million), comprised of units at an issue price of $0.60 per unit (the "Unit") and/or flow-through shares at an issue price of $0.80 per flow-through share (the "Offering"), subject to a maximum of $4,500,000 in gross proceeds from the issuance of flow-through shares. All other terms and conditions of the Offering will remain the same. 

The net proceeds raised from the Offering have been specifically allocated and are necessary for the acquisition of the properties described in the Company's news release dated September 7, 2010 (NR10-05), initial exploration and drill testing of said properties, confirmation of historic resources on the property in order to bring them into compliance with NI43-101 requirements, retirement of debt obligations and for general working capital purposes. Closing of the Offering is anticipated to occur on or about October 15, 2010. Closing of the Offering is subject to receipt of regulatory approvals, including the approval of the TSXV for the Offering, the transactions which are the basis for the reactivation of the Company as described in the Company's news release dated September 7, 2010 (NR10-05) and the entering into by the Company and the Agents of an agency agreement. The securities issued will be subject to a four month hold period under applicable securities laws in Canada.

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

About Balmoral Resources –

Balmoral Resources is a newly formed Vancouver-based precious metal exploration and development company focused on district scale gold and silver opportunities in politically favourable jurisdictions in North America. With a philosophy of creating value through the drill bit and with a focus on proven productive precious metal belts Balmoral is following an established formula with a goal of maximizing shareholder value through discovery.

On behalf of the board of directors of BALMORAL RESOURCES LTD.

Darin Wagner, President and CEO

This press release includes certain "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and Canadian securities laws including statements regarding the financing and use of proceeds. Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions or are those which, by their nature, refer to future events. Although the Company believes that such statements are reasonable, there can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. The Company cautions investors that any forward-looking statements by the Company are not guarantees of future performance, and that actual results may differ materially from those in forward-looking statements. Important factors that could cause actual events and results to differ materially from the Company's expectations include the need to satisfy the conditions set forth in any definitive agreement entered into in connection with the Offering and with each of the Bonanza and Radisson Agreements upon which the completion of the Offering is contingent; the need to satisfy regulatory and legal requirements with respect to the Bonanza and Radisson Agreements and the Offering; risks related to the Company's reactivation on the Exchange; risks related to the exploration stage of the Company's projects; market fluctuations in prices for securities of exploration stage companies; and uncertainties about the availability of additional financing; risks related to the Company's ability to identify one or more economic deposits on the properties, and variations in the nature, quality and quantity of any mineral deposits that may be located on the properties; risks related to the Company's ability to obtain any necessary permits, consents or authorizations required for its activities on the properties; and risks related to the Company's ability to produce minerals from the properties successfully or profitably. Trading in the securities of the Company should be considered highly speculative.

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 press release.

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