Blackdog Resources Ltd.
TSX VENTURE : DOG

Blackdog Resources Ltd.

January 05, 2011 08:00 ET

Blackdog Resources Ltd. Announces Closing of Non Brokered Flow Through Private Placement

CALGARY, ALBERTA--(Marketwire - Jan. 5, 2011) - Blackdog Resources Ltd. ("Blackdog" or "the Company") (TSX VENTURE:DOG) is pleased to announce it has closed its previously announced non brokered private placement (the "private placement") for aggregate gross proceeds of $1,190,027.16. The Private Placement was oversubscribed and closed in two tranches on December 22, 2010 and December 31, 2010. The Company issued a total of 3,305,631 Common Shares on a "flow through" basis under the Income Tax Act (Canada) ("Flow-Through Shares") at a price of $0.36 per Flow Through Share. In connection with the Private Placement, the Company paid certain investment professionals an aggregate of $50,026.83 in finder's fee and issued an aggregate of 138,496 share purchase warrants ("Broker Warrants"), each such Broker Warrant exercisable for one Common Share at a price of $0.36 per share for one year from the closing of the Private Placement. All securities issued will be subject to a 4 month hold period from the date of closing.

The proceeds from the Private Placement will be used to fund activities eligible for Canadian Exploration and development expenses, to develop the Company's light oil plays in Alberta and SE Saskatchewan.

Blackdog is a junior oil and gas company focused on the development of light oil with producing assets in South East Saskatchewan and Alberta. The Company has 24,574,318 Common Shares outstanding.

This press release contains forward-looking statements. More particularly, this press release contains forward-looking statements related to the anticipated use of proceeds from the Private Placement and the tax treatment of the Flow-Through Shares. The forward-looking statements contained in this document are based on certain key expectations and assumptions made by Blackdog, including: expectations and assumptions concerning receipt of required regulatory approvals and the satisfaction of other conditions to the completion of and use of proceeds from the Private Placement. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Blackdog can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the failure to expend the proceeds or incur qualifying expenditures as planned. Additional information on these and other factors that could affect the Company's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com). The forward-looking statements contained in this document are made as of the date hereof and Blackdog undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

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