Blackstone Ventures Inc.

Blackstone Ventures Inc.

September 20, 2005 09:23 ET

Blackstone Announces Brokered and Non-Brokered Private Placements

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Sept. 20, 2005) - Blackstone Ventures Inc. (TSX VENTURE:BLV) is pleased to announce that the Company has arranged a brokered best efforts private placement to raise minimum gross proceeds of $2.5 million to a maximum of $5 million and a non-brokered private placement with Falconbridge Limited for gross proceeds of $350,000 that will close concurrently with and is subject to the successful completion of the brokered financing.

Pursuant to the private placements, the Company will issue and sell units ("Units") at an issue price of $0.33 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 $0.50 for a period of twelve months following closing.

Toll Cross Securities Inc. ("Agent") will act as lead agent for the brokered placement and will be entitled to receive a 7.5% cash commission and compensation options, entitling the Agent to subscribe for additional Units equal to 8.0% of the total number of Units sold. The compensation options will be exercisable for a period of twelve months from the closing date on the same terms at an exercise price of $0.33 per Unit.

Subject to receipt of all necessary regulatory approvals and the satisfaction of other customary closing conditions, it is expected the financings will close on or about October 6, 2005. Any securities issued in conjunction with the 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 Norway nickel exploration projects including Vakkerlein and the South Norway Projects recently optioned from Falconbridge Limited (Ertelien, Bamble, Evje, Hosanger and Skjaekerdalen), on the Kenbridge nickel project in Ontario, and for general working capital.

The Company has also granted options to employees, consultants and an officer of the Company to purchase an aggregate of 400,000 common shares. These options are exercisable at $0.33 per common share for a period of five years from date of grant.

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.
    Robert Carriere
    Manager, Investor Relations
    (604) 687-3929