BlackPearl Resources Inc.

BlackPearl Resources Inc.

November 16, 2010 08:35 ET

BlackPearl Announces $50.0 Million in Equity Financings

CALGARY, ALBERTA--(Marketwire - Nov. 16, 2010) -


BlackPearl Resources Inc. ("BlackPearl" or the "Company") (TSX:PXX)(FIRST NORTH:PXXS) is pleased to announce that it has entered into an agreement with a syndicate of underwriters co-led by FirstEnergy Capital Corp. and RBC Capital Markets, and including Canaccord Genuity Corp., GMP Securities L.P., Peters & Co. Limited, TD Securities Inc., CIBC World Markets Inc., Desjardins Securities Inc., Macquarie Capital Markets Canada Ltd., Salman Partners Inc. and Scotia Capital Inc. (the "Underwriters") pursuant to which the Underwriters have agreed to purchase for resale to the public, on a bought deal basis, 6,000,000 common shares of the Company (the "Common Shares") at a price of $5.00 per Common Share representing gross proceeds of $30.0 million.

In addition, the Company intends to issue by private placement an additional 4,000,000 Common Shares at a price of $5.00 per Common Share representing additional gross proceeds of $20.0 million.

The Company intends to use the net proceeds from the financings to fund its ongoing capital program, and for general corporate purposes.

The financings are scheduled to close on or about December 7, 2010 and are subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the Toronto Stock Exchange and applicable securities regulatory authorities.

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

BlackPearl's Certified Advisor on First North is E. Öhman J:or Fondkommission AB.

Company Registration Number: 409596-1

Forward-Looking Statements

This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "believe", "plan", "continuous", "estimate", "expect", "may", "will", "project", "should", "predict", "targeting", "seek", "intend", "could", "potential" or similar words. In particular, this press release containing forward-looking statements regarding the anticipated use of proceeds of the Company's proposed equity financings and the expected closing date of the financings. Since forward looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ, and the difference may be material and adverse to the Company and its shareholders. The closing of the financings could be delayed if the Company is not able to obtain the necessary regulatory and stock exchange approvals in a timely manner. The financings will not be completed at all if these approvals are not obtained or some other condition to the closing is not satisfied. The intended use of the net proceeds of the financings may change if the board of directors and management determine that it is in the Company's best interests to deploy the proceeds for some other purpose. The Company believes the expectations and assumptions reflected in those forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon.

The forward-looking statements and information contained in this press release are made as of the date hereof and the Company undertakes no obligations to update publicly or otherwise any forward-looking statements and information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

Contact Information

  • BlackPearl Resources Inc.
    John Festival
    President and Chief Executive Officer
    (403) 215-8313
    (403) 265-8324 (FAX)
    BlackPearl Resources Inc.
    Don Cook
    Chief Financial Officer
    (403) 215-8313
    (403) 265-8324 (FAX)