Hillsborough Resources Limited

Hillsborough Resources Limited

August 18, 2005 16:27 ET

Hillsborough Resources: Hillsborough Announces the Closing of a $4,530,000 Million Financing

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 18, 2005) - Hillsborough Resources Limited (TSX:HLB) is pleased to announce the closing of the private placement financing previously announced in its press release of July 22, 2005. The Corporation has issued today a private placement of 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 also issued a further 350,000 Flow-Through Shares to directors, officers, and employees of the Corporation on a non-brokered basis at the same price. The aggregate gross proceeds from these issues total $4,530,000.

The securities issued under this offering were issued by way of private placement in British Columbia, Alberta and Ontario.

The Corporation plans to use the proceeds from the offering of the Flow-Through Shares to incur eligible Canadian Exploration Expenses on its properties in Northeast British Columbia.

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 metallurgical coal properties near Tumbler Ridge in the Northeast of 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)