Highland Resources Inc.
TSX VENTURE : HI

Highland Resources Inc.

May 31, 2012 13:37 ET

Highland Raises $16.5 Million, Closes Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 31, 2012) - Highland Resources Inc. (the "Company") (TSX VENTURE:HI) announces it has closed the final tranche of its non-brokered private placement (see news releases of May 4, May 23 and May 29, 2012), raising a total of $16,500,000 in three tranches through the issuance of 206,250,000 Units at a price of $0.08 per Unit. Each Unit is comprised of one common share of Highland and one transferable common share purchase warrant, each whole warrant exercisable for a period of two years from the date of issue to purchase one common share of Highland at a price of $0.15 per share.

The warrants are subject to an acceleration clause at the option of the Company, with a provision that if after the expiry of all resale restrictions, the closing price of the Company's shares on the TSX Venture Exchange is $0.40 or greater for a period of 20 consecutive trading days, the Company may give notice of an earlier expiry of the Warrants, in which case they will expire 30 days after the giving of such notice.

As part of the private placement, an aggregate of $283,274.00 was paid to various finders for portions of the financing attributable to such finders' efforts. Additionally, 16,849,938 shares were issued to Nassau Capital Management Partners Inc. ("Nassau") as a finder's fee for the portion of the financing attributable to Nassau's efforts.

All of the securities issued pursuant to this offering are restricted from trading for a period of four months and one day after closing.

In addition to working capital, the net proceeds of the private placement will be used to meet the Company's commitments for acquiring a 65% interest in copper properties located in the Keweenaw and Houghton counties of Michigan. (See news release dated November 1, 2011).

After closing the private placement, the Company's current issued and outstanding share capital is a total of 256,916,060 common shares.

ON BEHALF OF THE BOARD

Robert Eadie, President, Chief Executive Officer and Director

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 release.

Contact Information

  • Highland Resources Inc.
    Robert Eadie
    President, Chief Executive Officer and Director
    1-604-602-4935
    1-604-602-4936 (FAX)