Highland Resources Inc.
TSX VENTURE : HI

Highland Resources Inc.

April 30, 2009 10:00 ET

Highland Raises $690,700 Under Short Form Offering Document and Issues Shares to Acquire Interest in Rickaby Property

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 30, 2009) - Highland Resources Inc. (the "Company") (TSX VENTURE:HI) has completed the initial payment in connection with the acquisition of a 51% interest in the Rickaby Property from Canadian Prospector Inc. ("CPI"), previously announced February 27, 2009. The Property consists of 88 mineral claims over approximately 18,624 acres located in the Beardmore-Geraldton Belt of the Thunder Bay Mining District, Ontario (the "Property"). The area is known to host gold deposits along with hosting base metal occurrences. The claims are subject to a 3% net smelter return royalty in favour of Jamie Wheeler, the President of CPI.

The Company issued 2,916,666 common shares and paid $250,000 to CPI in connection with the acquisition of the interest. The Company is obligated to complete $1,000,000 in exploration expenditures before April 29, 2010. The shares have been placed in escrow and will be returned to the Company for cancellation if the Company does not complete the exploration expenditures, and the Property will be returned to CPI. The Company further issued 393,749 shares as a finder's fee in connection with the acquisition, which shares are also subject to escrow.

The Company is also pleased to announce it has completed a closing under its short form offering document dated April 3, 2009. The Company issued 4,605,000 units (the "Units") in this closing, each Unit consisting of one common share and one half of one common share purchase warrant, each whole warrant entitling the holder to purchase a further common share at a price of $0.30 per share, for a period expiring April 29, 2010, and thereafter at a price of $0.40 until April 29, 2011. A total of 306,000 Units are subject to a four month hold period expiring August 30, 2009. The Company paid the agent, Jordan Capital Markets Inc., and members of its selling group (the "Agents"), a cash commission equal to 8% of the gross funds raised, and issued to the Agents options to purchase up to 690,750 Units, at a price of $0.15 per Unit, exercisable at any time on or before April 29, 2011. The Units underlying the Agent's options are subject to a four month hold period expiring August 30, 2009.

This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

ON BEHALF OF THE BOARD

Robert Eadie, President and Chief Executive Officer

The TSX Venture Exchange Inc. has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.

Contact Information

  • Highland Resources Inc.
    Robert Eadie
    1-604-602-4935
    1-604-602-4936 (FAX)