Blackstone Ventures Inc.

Blackstone Ventures Inc.

August 17, 2006 10:11 ET

Blackstone Announces $7.5 Million Brokered Private Placement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 17, 2006) - Blackstone Ventures Inc. (TSX VENTURE:BLV) is pleased to announce that the Company has reached an agreement with a syndicate of dealers led by Toll Cross Securities Inc., and including Pacific International Securities Ltd. (the "Agents"), to raise a minimum of $7.5 million to a maximum of $10 million by way of a best efforts private placement.

Pursuant to the private placement, the Company will issue and sell units at an issue price of $0.65 per unit. Each unit will consist of a common share and a one-half common share purchase warrant, with each whole warrant entitling the holder to purchase one additional common share at $1.00 per common share for a period of eighteen months following closing.

The Agents will be entitled to receive a 7.5% cash commission. The Agents may elect to receive up to 50% of the commission in Units. In addition, the Agents will receive compensation options equal in number to 8.0% of the number of Units sold under the offering. The compensation options will be exercisable for a period of eighteen months from the closing date and will allow the Agents to purchase additional units at $0.65 per unit.

The brokered private placement is subject to regulatory approvals and the satisfaction of other customary closing conditions. 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.

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

On behalf of Blackstone Ventures Inc.

Donald A. McInnes, President

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

Contact Information

  • Blackstone Ventures Inc.
    Donald McInnes
    (604) 687-3929
    Blackstone Ventures Inc.
    Dean MacEachern
    Chief Operating Officer
    (705) 507-1996