Blue Pearl Mining Ltd.

Blue Pearl Mining Ltd.

August 24, 2005 09:23 ET

Blue Pearl Arranges Private Placement

TORONTO, ONTARIO--(CCNMatthews - Aug. 24, 2005) - Blue Pearl Mining Ltd. (TSX VENTURE:BLE) (TSX VENTURE:BLE.WT) is pleased to announce it has arranged a non-brokered private placement of 2,500,000 Units with The Tell Fund at a price of $0.60 per Unit to raise gross proceeds of $1,500,000. Each Unit comprises one common share and one-half of a common share purchase warrant. Each whole common share purchase warrant entitles the holder to purchase one common share at a price of $0.70 until March 22, 2007. The transaction is subject to acceptance for filing by the TSX Venture Exchange.

The Company, as previously announced in a news release dated June 21, 2005, has retained Hatch Ltd. to complete a feasibility study on the Davidson molybdenum deposit near Smithers, B.C. Subject to results of the feasibility study, mine development is scheduled to begin in 2007.

Based on a technical report compliant with National Instrument 43-101 and filed on SEDAR, and using a cut-off grade of 0.2% MoS2, the Davidson property is estimated to contain a measured and indicated mineral resource of 83.0 million tons grading 0.295% MoS2 representing 293.5 million pounds of molybdenum (please refer to the Company's Material Change Report dated Jan. 26, 2005, and Technical Report dated February 16, 2005 and filed on SEDAR on March 7, 2005). Gary Giroux, P. Eng., is the independent qualified person in accordance with National Instrument 43-101 and has read and approved this news release.

Shares outstanding: 40,569,382

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

Contact Information

  • Blue Pearl Mining Ltd.
    Ian McDonald
    Chairman & CEO
    (416) 860-1438, toll free: 1-800-827-0992
    Blue Pearl Mining Ltd.
    Jim Borland
    Investor Relations Director
    (416) 860-1438, toll free: 1-800-827-0992
    Renmark Financial Communications Inc.
    Christina Lalli
    (514) 939-3989