Hillsborough Resources Limited

Hillsborough Resources Limited

July 22, 2005 15:02 ET

Hillsborough Resources: Hillsborough Announces $4,530,000 Private Placement Flow-Through Financing

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - July 22, 2005) - Hillsborough Resources Limited (TSX:HLB) is pleased to announce that it has retained Pacific International Securities Inc. (the "Agent") to act as agent in connection with the private placement of up to 2,670,000 "flow-through" common shares ("Flow-Through Shares") of the Corporation at a purchase price of $1.50 per Flow-Through Share. The Corporation may concurrently issue up to a further 350,000 Flow-Through Shares to directors, officers and employees of the Corporation on a non-brokered basis at the same price. All Flow-Through Shares issued under these offerings will be subject to a negotiated hold period expiring February 1, 2006 which exceeds the statutory four month hold period otherwise applicable. Aggregate gross proceeds from these offerings will be up to $4,530,000, and the Agent will receive a commission of 5% of the gross proceeds from the brokered offering plus compensation options to purchase non-flow-through common shares at a price of $1.60 per share and exercisable for up to one year, such options to be equal in number to 7% of the number of Flow-Through Shares issued under the brokered offering. The Company plans to use the proceeds from the offering to incur eligible Canadian Exploration Expenses.

The Securities to be issued under this offering will be offered by way of private placement in British Columbia, Alberta and Ontario, and such other jurisdictions as may be agreed to by the Corporation and the Agent. The offerings are scheduled to close on or about August 10, 2005 and are subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the Toronto Stock Exchange and the appropriate securities regulatory authorities.

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.

Hillsborough Resources Limited is a coal mining company that operates the Quinsam underground thermal coal mine in Campbell River, British Columbia serving the local and west-coast U.S. cement industry, and the Crossville underground coal mine in Tennessee which is currently being brought into commercial production. We are also developing substantial metallurgical coal properties near Tumbler Ridge in the Northeast of British Columbia, as well as the Bingay Creek metallurgical coal project in the Elk Valley region of Southeast British Columbia.

David J. Slater, President & Chief Executive Officer

This release may contain forward-looking statements regarding the Company's business or financial condition. Actual results could differ materially from those described in this news release as a result of factors including but not limited to the following: adverse exploration or development results; re-assessments of corporate or development objectives and requirements; additional technical developments and considerations; unexpected increases in the costs of producing coal, changes in international coal or transportation markets, a rapid change in the value of the Canadian dollar particularly with respect to the US dollar, a fundamental slow down in the North American, Asian or worldwide economies; and other factors.

Contact Information

  • Hillsborough Resources Limited
    David Slater
    President & CEO
    (604) 684-9288
    (604) 684-3178 (FAX)