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Balmoral Receives Conditional Approval For Reactivation To TSXV

 
Nov 04, 2010 NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION THROUGH U.S. NEWSWIRE SERVICES

(Vancouver, November 4, 2010) - Balmoral Resources Ltd. ("Balmoral" or the "Company") (NEX:BAR.H) announced today that further to its press releases dated September 7 and 21, 2010 (NR10-05 and 10-06), the Company has received conditional approval from the TSX Venture Exchange ("TSXV") for its proposed reactivation to Tier 1 status on the TSXV, $18 million equity financing and the acquisition of five prospective gold projects located in the Abitibi Greenstone Belt of Quebec and the Hemlo Greenstone Belt of Ontario.

The Financing and Reactivation to Tier 1 of the TSXV

The Company and its agents expect to close the previously announced financing for aggregate gross proceeds of approximately $18,000,000 on November 9, 2010 (the "Offering"). The Offering conducted on behalf of the Company on a commercially reasonably "best efforts" basis by a syndicate of agents co-led by Haywood Securities Inc. and Raymond James Ltd. and including Canaccord Genuity Corp. (the "Agents"), was heavily over-subscribed. Terms of the Offering can be found in the Company's press releases of September 7 and 21, 2010 (NR10-05 and 10-06).

Closing of the financing is anticipated to occur in conjunction with the closing of the Company's property acquisitions described below and is subject to a number of conditions, including but not limited to, the receipt of final TSXV approval of the Company's reactivation. The Company anticipates that the reactivation of the Company to Tier 1 of the TSXV, and resumption of trading, will occur shortly after the closing of the Offering.

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 a U.S. person absent an exemption from the registration requirements of such Act.

The Projects

The Company further reported that it has now entered into a formal purchase agreement with American Bonanza Gold Corp. ("American Bonanza") (TSXV:BZA) pursuant to which the Company has acquired the right to purchase a 100% interest in the Fenelon, N2 (Northway-Noyon) and Martiniere properties located in Quebec and the Northshore property located in Ontario. The terms of the acquisition of American Bonanza's Canadian exploration assets are in keeping with the Letter of Offer announced September 7, 2010 (NR10-05) whereby the Company will make a one‐time cash payment of $3.7 million and issue 4.5 million common shares to American Bonanza.

The Company has also now entered into a formal option and joint venture agreement with Radisson Mining Resources Inc. ("Radisson") (TSXV:RDS) pursuant to which the Company has the right to acquire up to a 60% interest in Radisson's interest in the Detour East (Massicotte) Project in Quebec which extends east from the Quebec border for 20 kilometres along the Detour Lake Deformation Zone.
Please see press release NR10-05 dated September 7, 2010, available on the Company's website at www.balmoralresources.com, for additional information with respect to the above mentioned properties. Closing of the above acquisitions is subject to a number of conditions, including but not limited to, final TSXV approval and the closing of the Offering described above.

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 -- www.balmoralresources.com

Balmoral is a Vancouver‐based precious metal exploration and development company focused on district scale gold and silver opportunities in politically favourable jurisdictions in North America. With a philosophy of creating value through the drill bit and with a focus on proven productive precious metal belts, Balmoral is following a proven formula of maximizing shareholder value while limiting shareholder risk.

On behalf of the board of directors of
BALMORAL RESOURCES LTD.

"Darin Wagner"

President and CEO

For further information contact: John Toporowski, Manager, Investor Relations
Balmoral Resources Ltd., Vancouver, B.C.
Tel: (604) 638-5815 / Toll Free: (877) 838-3664
E-mail: jtoporowski@balmoralresources.com

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