Butler Resource Corp.

October 21, 2009 09:00 ET

Butler Increases Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 21, 2009) - Butler Resource Corp. (NEX:BTD.H) (the "Company") is pleased to announce that subject to acceptance by the TSX Venture Exchange (the "Exchange"), the Company has increased the private placement announced October 7th, 2009 from 4,000,000 units at $0.25 per unit to 5,200,000 units at $0.25 per unit for gross proceeds of $1,300,000. Each unit will consist of one common share and one-half of one common share purchase warrant, with each full warrant entitling the holder to purchase one additional common share at a price of $0.35 within 18 months of closing. The closing of the financing is conditional upon the Company receiving Exchange approval to graduate to the Exchange as a Tier 2 Mining Issuer. The Company intends to use the proceeds of the private placement to satisfy Tier 2 maintenance requirements of the Exchange.

In addition, the Company announces the deferment of the contract with KCrew Communications Inc. until such time as the Company becomes a Tier 2 issuer.

The Company anticipates receipt of assays from the recently completed sampling program on the Archie Lake rare earth property shortly. Upon receipt of the assays, the NI43-101 report will be completed and submitted to the Exchange as part of the Company's graduation to Tier 2.

On Behalf of the Board,

Peter Dickie, President

This press release contains projections and forward-looking information that involve various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance of the Company such as the statement that: (i) the Company intends to commission a NI 43-101 report on the Archie Lake project; (ii) the completion of the technical report may occur; (iii) the Company intends to seek approval from the Exchange to graduate from the NEX Board to the Exchange; (iv) the Company intends to close the merger agreement following graduation to the Exchange; (v) the Company intends to close the non-brokered financing of $1,300,000; and (vi) the Company intends to use the proceeds of the private placement to satisfy Tier 2 maintenance requirements of the Exchange. There are numerous risks and uncertainties that could cause actual results and the Company's plans and objectives to differ materially from those expressed in the forward-looking information, including: (i) receipt of approval from the Exchange with respect to the reactivation, the financing and the merger agreement; (ii) the ability of the Company to effect the reactivation and to close the financing and the merger agreement; (iii) general economic conditions; (iv) fluctuations in mineral prices; and (v) the ability of the Company to execute its business plan. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, the Company assumes no obligation to update forward-looking information should circumstances or management's estimates or opinions change.

"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

  • Butler Resource Corp.
    Peter Dickie
    President and CEO
    (604) 669-9330
    (604) 669-9335 (FAX)