Halo Resources Ltd.
TSX VENTURE : HLO

Halo Resources Ltd.

June 15, 2010 16:30 ET

Halo Announces CND $500,000 Financing

TORONTO, ONTARIO--(Marketwire - June 15, 2010) - Halo Resources Ltd. (TSX VENTURE:HLO) (the "Company") is pleased to announce a non-brokered private placement (the "Private Placement") to raise gross proceeds of $500,000.00 through the sale of 10,000,000 flow-through units ("FT Units") at a price of $0.05 per FT Unit to the MineralFields Group. Each FT Unit will be comprised of one common share of the Company to be issued on a "flow-through" basis under the Income Tax Act (Canada) and one-half of one common share purchase warrant (each whole warrant a "Warrant"). Each whole Warrant will be exercisable to acquire one additional non-flow-through common share of the Company at any time for a two year period following issuance, at an exercise price of $0.10 per share in the first year and $0.12 per share in the second year.

"We are very pleased to renewing our relationship with MineralFields Group," said Marc Cernovitch, Chairman of the Company. "This is an important milestone in the growth of the Company and we look forward to working with MineralFields Group as we develop our mineral exploration holdings."

In connection with the Private Placement, the Company will pay an arm's length finder (the "Finder") a cash finder's equal to 5% of the gross proceeds from the Private Placement. In addition, the Finder will receive compensation warrants ("Finder Warrants") exercisable, for a period of two years, to acquire such number of units ("Finder's Units") as is equal to 10% of the number of FT Units sold under the Private Placement, at a price of $0.05 per Finder's Unit. The Finder's Units will have the same attributes as the FT Units, provided that the common shares comprising part of the Finder's Units will be non-flow-through shares. 

All securities issued in connection with the Private Placement will be subject to a four-month hold period pursuant to applicable securities laws. 

The funds from the Private Placement will be used for exploration of the Company's properties. The Private Placement is scheduled to close on a date to be agreed to by the Company and MineralFields Group (the "Closing Date") and is subject to the approval of the TSX Venture Exchange. All securities issued in the Private Placement will be subject to a four month hold period commencing on the Closing
Date.

ON BEHALF OF THE BOARD OF DIRECTORS

About Halo Resources Ltd.

Halo is a Canadian-based resource company focused on the acquisition of near production base and precious base metal deposits. The Company's focus is the 200 sq. km. Sherridon VMS Property, a combination of mature and grassroots volcanogenic massive sulphide (VMS) copper, zinc and gold exploration opportunities. A 2008 NI43-101 compliant copper-zinc resource, for four of the known deposits in the district, was completed in less than 18 months. The Company has a joint venture interest in the Duport Property, an advanced gold property near Kenora, Ontario and is the operator for several contiguous joint venture properties in West Red Lake covering 45 sq. km. The Company is operated by an experienced management team with a growth strategy to develop a diversified portfolio of advanced mining projects.

Forward Looking Statements

This Company Press Release may contain certain "forward-looking" statements and information relating to the Company that are based on the beliefs of the Company's management as well as assumptions made by and information currently available to the Company's management. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including, without limitations, competitive factors, general economic conditions, customer relations, relationships with vendors and strategic partners, the interest rate environment, governmental regulation and supervision, seasonality, technological change, changes in industry practices, and one-time events. Should any one or more of these risks or uncertainties materialize, or should any underlying assumptions prove incorrect, actual results may vary materially from those described herein.

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

  • Halo Resources Ltd.
    Michael Joyner
    IR
    416-619-7539
    416-601-9046 (FAX)
    ir@halores.com