BMB Capital Corp.

June 09, 2010 12:41 ET

BMB Capital Corp. Announces a Non-Brokered Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 9, 2010) - BMB Capital Corp. (TSX VENTURE:BMB.P), a capital pool company ("CPC"), announces a non-brokered private placement of 5,000,000 flow-through common shares at a price of $0.15 per share to raise gross proceeds of $750,000.

The proceeds of the offering will be used to fund the Phase 1 exploration program on the Green Bay Project, Newfoundland The exploration program totalling $748,000, has been recommended in the independent technical report prepared by Larry R. Pilgrim, B.Sc., P. Geol., dated April 15, 2010, which was filed on SEDAR on May 13, 2010.

The Green Bay Project is currently being optioned to the Company by Commander Resources Ltd. ("Commander") pursuant to a Letter of Intent dated March 11, 2010 as amended March 19, 2010. Particulars of the foregoing are set out in the Company's news release dated March 24, 2010. The Company also announces that by amending letter dated June 2, 2010, the Company and Commander have agreed to reduce the initial 18 month work commitment and size of the initial financing required to exercise a portion of the option granted to the Company from $1,000,000 to $750,000.

The Company may pay finders fees in connection with the private placement to certain parties who are instrumental in introducing investors to the Company, subject to compliance with regulatory requirements.

The private placement and property option obtained from Commander, form the material portion of the Company's proposed Qualifying Transaction required to remove the current "CPC" designation and accompanying regulatory restrictions and are subject to acceptance by the TSX Venture Exchange. It is planned that the Company's shares will remain halted until completion of the Qualifying Transaction.

On Behalf of the Board of Directors,

Allan W. Williams, President

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • BMB Capital Corp.
    Allan W. Williams
    (604) 916-4361