Blue Pearl Mining Ltd.
TSX : BLE
TSX : BLE.WT
FRANKFURT : A6R

Blue Pearl Mining Ltd.

April 05, 2006 13:55 ET

Blue Pearl Mining Completes $3 Million Financing for its Davidson Molybdenum Project

TORONTO, ONTARIO--(CCNMatthews - April 5, 2006) - Blue Pearl Mining Ltd. (TSX:BLE)(TSX:BLE.WT)(FRANKFURT:A6R) today announced the closing of a private placement of 1,085,000 flow-through common shares priced at $2.85 per share for total gross proceeds of $3,092,250. The financing was led by Canaccord Adams and included Orion Securities Inc. (the "Agents"). Blue Pearl also issued compensation options entitling the Agents to purchase 75,950 common shares at $2.85 per share until April 5, 2008.

Funds raised from the issuance of the flow-through shares will be used for exploration expenditures at the Company's Davidson Project, an underground molybdenum deposit near Smithers in northern British Columbia, which will constitute Canadian exploration expenses (as defined in the Income Tax Act) and will be renounced for the 2006 taxation year. The flow-through shares will be subject to a four-month hold period from the closing date.

Engineering consultant, Hatch Inc., is in the midst of a study to determine the feasibility of mining a high-grade portion of the Davidson Deposit and shipping ore to Endako's Fraser Lake operations roughly 200 kilometres southeast of Smithers. As previously announced in late February, Blue Pearl has signed a Memorandum of Understanding with Endako Mines for construction of a 2,000-tonne-per-day milling circuit to process Davidson ore at Endako.

About Blue Pearl Mining

Blue Pearl is a Canadian mineral resource company focused solely on developing the Davidson molybdenum Project. For further information please visit our website at www.bluepearl.ca.

Shares outstanding: 47,784,528

Contact Information

  • Blue Pearl Mining Ltd.
    Ian McDonald
    Chairman & CEO
    (416) 860-1438 or toll free: 1 (800) 827-0992
    or
    Blue Pearl Mining Ltd.
    Olav Svela
    VP, Investor Relations
    (416) 860-1438 or toll free: 1 (800) 827-0992
    info@bluepearl.ca
    or
    Renmark Financial Communications Inc.
    Christina Lalli
    (514) 939-3989
    clalli@renmarkfinancial.com