Blue Pearl Mining Ltd.

Blue Pearl Mining Ltd.

August 31, 2005 11:22 ET

Blue Pearl Closes $1.5-Million Private Placement

TORONTO, ONTARIO--(CCNMatthews - Aug. 31, 2005) - Blue Pearl Mining Ltd. (TSX VENTURE:BLE)(TSX VENTURE:BLE.WT) is pleased to announce that it has closed its previously announced 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 is comprised of one (1) common share and one half (1/2) of a 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 common shares and the warrants acquired or any common shares acquired on the exercise of warrants will be legended and restricted from trading until December 31, 2005.

The Company plans to use the net proceeds to advance development of its Davidson molybdenum property near Smithers, B.C., and for general working capital. 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 property. 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: 43,069,382

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