Blackstone Ventures Inc.

Blackstone Ventures Inc.

June 06, 2008 09:15 ET

Blackstone Announces $5.0 Million Private Placement Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 6, 2008) - Blackstone Ventures Inc. (TSX VENTURE:BLV) (the "Company") is pleased to announce that it has reached an agreement with a syndicate of agents led by Versant Partners Inc. (the "Lead Agent"), and including Dundee Securities Corp. and Toll Cross Securities Inc., to act as agents ("Agents") on behalf of the Company, on a best efforts basis, in connection with a proposed private placement by the Company of units of securities (the "Units") in the capital of the Company (the "Offering"). Each Unit will be issued at a price of $0.45 and will consist of one common share in the capital of the Company (a "Common Share") and one half of one Common Share purchase warrant (a "Warrant). Each whole Warrant will be exercisable into one Common Share for a period of 24 months from the closing at an exercise price of $0.55 per share. In addition, the Company has granted the Agents an option to increase the size of the Offering by up to $1,000,000 at any time until the closing of the Offering.

The Company will pay the Agents a commission equal to 6% of the aggregate gross proceeds of the Offering, payable in cash at, and conditional on, closing of the Offering. As additional consideration, at the closing of the Offering, the Agents will be issued warrants (the "Broker Warrants") of Blackstone to purchase such number of Units as is equal to 6% of the number of Units purchased under the Offering, each Broker Warrant to be exercisable for one Unit at any time a period of 24 months from the closing at an exercise price equal to $0.45 per Unit. In addition, the Lead Agent will be paid a $35,000 corporate finance fee.

The private placement is subject to regulatory approvals, the satisfaction of other customary closing conditions and to the execution of a definitive agency agreement to be entered into among the Company and the Agents. Any securities issued in conjunction with this financing will be subject to minimum resale restrictions for four months and a day from the date of close. Closing is anticipated to occur on or about June 24, 2008.

The net proceeds of this private placement will be used to fund the Company's Scandinavian nickel and VMS exploration projects and for general working capital.

On behalf of Blackstone Ventures Inc.

Dean MacEachern, President

Caution Regarding Forward-Looking Statements - This news release contains certain forward-looking statements, including statements regarding the business and anticipated financial performance of the Company. These statements are subject to a number of risks and uncertainties. Actual results may differ materially from results contemplated by the forward-looking statements. When relying on forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and should not place undue reliance on such forward-looking statements. The Company does not undertake to update any forward looking statements, oral or written, made by itself or on its behalf.

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

Contact Information

  • Blackstone Ventures Inc.
    Troy Winsor
    Blackstone Ventures Inc.
    Robert Carriere
    (604) 687-3929