Blackheath Closes Over-Subscribed Private Placement to Strategic Group of Investors
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 20, 2013) - Blackheath Resources Inc. (TSX VENTURE:BHR)(FRANKFURT:04B) (the "Company") is pleased to announce that it has now closed its previously announced non-brokered private placement. The Company raised gross proceeds of $1,708,000 through the issuance of 4,880,000 units at a price of $0.35 per unit. Each unit is comprised of one common share of the Company and one non-transferable common share purchase warrant (a "Warrant"). Each Warrant entitles the holder to purchase one additional common share of the Company at an exercise price of $0.50 per share for a period of 36 months from the closing of the private placement.
The Warrants are subject to acceleration such that, commencing on June 21, 2013, if the closing price of the Company's common shares on the TSX Venture Exchange, or any other exchange on which the Company's shares are then listed, is at a price equal to or greater than $0.80 for a period of twenty (20) consecutive trading days, the Company will have the right to accelerate the expiry date of all Warrants by giving written notice to the holders of the Warrants that the Warrants will expire on the date that is not less than thirty (30) days from the date of the notice to the Warrant holders.
The Company paid cash finders' fees totalling $74,480 and issued 212,800 non-transferable finders' units, each comprised of one common share and one non-transferable share purchase warrant having the same terms as the subscribers' Warrants.
The Company intends to expend the proceeds raised from the private placement on exploration of the Covas, Borralha and Bejanca tungsten projects in northern Portugal and for general working capital purposes.
All securities issued or issuable under the private placement are subject to a hold period under applicable Canadian securities laws expiring on June 21, 2013, in addition to such other restrictions as may apply under applicable securities laws outside Canada.
Blackheath Resources Inc. is listed on the TSX Venture Exchange, and is focused on tungsten exploration and development in Portugal. The Company holds the Borralha and Bejanca tungsten projects and also the Covas tungsten project, where exploration and drilling is currently underway. Management of Blackheath has previous experience in tungsten mining operations in Portugal through Primary Metals Inc., the operator of the Panasqueira Tungsten Mine from 2003 to 2007. Further information about the company's activities may be found at www.blackheathresources.com and under the company's profile at www.sedar.com.
ON BEHALF OF THE BOARD
James Robertson, President, CEO and Director
This news release includes certain forward-looking statements or information. All statements other than statements of historical fact included in this release, including, without limitation, statements regarding the use of the proceeds of the private placement and other future plans and objectives of the Company are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's plans or expectations include market prices, availability of capital and financing, general economic, market or business conditions, regulatory changes, timeliness of government or regulatory approvals and other risks detailed herein and from time to time in the filings made by the Company with securities regulators. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise except as otherwise required by applicable securities legislation. The Company does not update forward-looking information, except as required by applicable laws.
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Blackheath Resources Inc.