October 17, 2013: Vancouver, BC – Balmoral Resources Ltd. (Stock Profile – TSXV:BAR & OTCQX:BALMF) announces that it has closed the first tranche of its previously announced (see NR13-22 and NR13-23 dated October 4 and 9, 2013 respectively) non-brokered private placement (“the Offering”). In conjunction with this first closing, the Company has issued 7,467,946 flow-through common shares (“FT Shares”) at a price of $0.475 per FT Share and 4,472,788 units (“Units”) at a price of $0.425 per Unit for aggregate gross proceeds of $5,448,209.
Each Unit consists of one non-flow-through common share in the capital of the Company and one half of one common share purchase warrant (each whole common share purchase warrant, a “Warrant”). Each whole Warrant entitles the holder to purchase one additional common share in the capital of the Company (each, a “Common Share”) at any time up to October 17, 2014 at an exercise price of $0.75 per Common Share. A total of 2,236,394 Warrants were issued to purchasers in conjunction with today’s closing.
The net proceeds raised from the Offering will be used by the Company for further exploration of its Detour Gold Trend Project and other property assets located in the Province of Quebec, for general working capital and other corporate purposes.
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