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Balmoral Announces $4.0 Million Bought Deal, Flow-Through Private Placement

 
Jun 04, 2014 (Vancouver, June 4, 2014) - Balmoral Resources Ltd. (TSX:BAR) ("Balmoral" or the "Company") announces that it has entered into an agreement with Canaccord Genuity Corp. (“Canaccord”), pursuant to which Canaccord will purchase, as underwriter, 2,290,000 flow-through common shares of the Company (the “Flow-Through Shares”) at a price of $1.75 per Flow-Through Share on a bought deal private placement basis for gross proceeds of $4,007,500 (the "Offering"). This represents a 59% premium to the 7 day volume weight average trading price of Balmoral common shares on the TSX. The Company has also granted Canaccord an option to purchase from the Company up to an additional 290,000 Flow-Through Shares (the “Over-Allotment Shares” and together with the Flow-Through Shares, the “Offered Securities”) through the Offering at a price of $1.75 per Over-Allotment Share, exercisable at least 48 hours prior to the closing date of the Offering.
 
The proceeds raised from the Offering will be used by the Company for further exploration of its Detour Gold Trend Project and other properties located in the Province of Quebec.
 
Closing of the Offering is anticipated to occur on or before June 20, 2014. Closing of the Offering is subject to receipt of regulatory approvals, including the acceptance of the Offering by the Toronto Stock Exchange (“TSX”). The Offered Securities will be subject to a four month hold period under applicable securities laws in Canada.
 
In consideration of Canaccord’s services, the Company has agreed to pay Canaccord a cash commission of 5% of the gross proceeds of the Offering. Canaccord will also receive broker warrants (the "Broker Warrants") equal to 6% of the Offered Securities sold pursuant to the Offering. Each Broker Warrant entitles the holder to acquire one common, non-flow-through, share of the Company at a price of $1.25 until the date that is 24 months from the closing of the Offering.
 
This news release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein in the United States. The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to the account or benefit of a U.S. person absent an exemption from the registration requirements of such Act.

About Balmoral Resources Ltd. - www.balmoralresources.com
Balmoral is a Canadian-based discovery company focused on high-grade gold and nickel discoveries on its wholly owned, 700 square kilometre Detour Trend Project in Quebec, Canada. With a philosophy of creating value through the drill bit and a focus on proven productive precious/base metal belts, Balmoral is following an established formula with a goal of maximizing shareholder value through discovery and definition of high-grade, Canadian gold and base metal assets.
 
On behalf of the board of directors of 
BALMORAL RESOURCES LTD.
 
“Darin Wagner”
 President and CEO
For further information contact:
John Toporowski, Manager, Corporate Development
(604) 638-5815 / Toll Free: (877) 838-3664
Email: jtoporowski@balmoralresources.com
www.balmoralresources.com

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