SOURCE: Falco Resources Ltd

Falco Resources Ltd

October 01, 2014 16:02 ET

Falco to Raise up to $7 Million Through Marketed Offering


Falco Resources Ltd. ("Falco") (TSX VENTURE: FPC) announces today that it has entered into an agreement with a syndicate of agents led by Scotia Capital Inc., under which the agents will raise approximately C$7,000,000 in a combination of flow-through shares and common shares from Falco in a marketed offering. Final pricing and determination of the number of flow-through shares and common shares will be determined in the context of the market. 

The agents shall also have the option (exercisable up to 48 hours prior to closing of the offering) to purchase from Falco up to an additional 15% of securities on the same terms as the offering.

Net proceeds from the offering will be used to advance Falco's Horne 5 Project and for further exploration at Falco's Rouyn-Noranda properties, as well as for general working capital purposes. Proceeds raised from the sale of flow-through shares will be used by Falco to finance qualified Canadian exploration expenditures on its Canadian resource properties.

The offering will take place by way of a marketed private placement, to qualified investors in such provinces of Canada as the agents may designate, and otherwise in those jurisdictions where the offering can lawfully be made, including but not limited to the United States (with respect to the common shares only) under applicable private placement exemptions. The securities to be issued under the offering will have a hold period of four months and one day from their issue.

The offering is expected to close on or about October 22, 2014 and is subject to receiving all necessary regulatory approvals. 

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

About Falco

Falco Resources Ltd. (TSX VENTURE: FPC) is one of the largest claim holders in the Province of Quebec, with extensive land holdings in the Abitibi Greenstone Belt. Falco owns 72,800 hectares of land in the Rouyn-Noranda mining camp, which represents 70% of the entire camp and includes 14 former gold and base metal mine sites. Falco's principal property is the Horne Mine Complex, which was operated by Noranda from 1927 to 1976 and produced 11.6 million ounces of gold and 2.5 billion pounds of copper. A maiden 43-101 mineral resource estimate for the Horne 5 deposit delineated an initial inferred resource of 2.8 Moz AuEq at 3.46 g/t AuEq (25.3 million tonnes grading 2.64 g/t Au, 0.23% Cu and 0.7% Zn, for 2.2 Moz Au -- see March 4, 2014 press release for details).

Neither the 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 press release.

Cautionary Note Regarding Forward-Looking Statements
This news release contains forward-looking statements and forward-looking information (together, "forward-looking statements") within the meaning of applicable securities laws and the United States Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, are forward-looking statements. Generally, forward-looking statements can be identified by the use of terminology such as "plans", "expects', "estimates", "intends", "anticipates", "believes" or variations of such words, or statements that certain actions, events or results "may", "could", "would", "might", "will be taken", "occur" or "be achieved". Forward-looking statements involve risks, uncertainties and other factors that could cause actual results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements include the reliability of the historical data referenced in this press release and those risks set out in Falco's public documents, including in each management discussion and analysis, filed on SEDAR at Although Falco believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed times frames or at all. Except where required by applicable law, Falco disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

This press release is not, and is not to be construed in any way as, an offer to buy or sell securities in the United States.

Contact Information

  • For further information contact:
    Mr. Dean Linden 
    Senior Vice President 
    Business Development 

    Ms. Deanna Kress
    Corporate Communications