Halo Resources Ltd. (TSX VENTURE: HLO)(FRANKFURT: HRLN) ("Halo" or
the "Company") is pleased to announce that Halo has arranged for
financings to raise up to an aggregate of CDN $4.5 Million.
Private Placement by HudBay Minerals Inc.
Halo has entered into a subscription agreement for a
non-brokered, private placement (the "HudBay Private Placement") to
raise $1,827,500 through the sale of 3,655,000 units (the "Units")
to HudBay Minerals Inc. (TSX, NYSE:HBM) ("HudBay") at a price of
$0.50 per Unit. Each Unit consists of one common share and one half
of one non-transferable common share purchase warrant (a
"Warrant"). Each whole Warrant entitles HudBay to purchase one
common share of the Company at an exercise price of $0.60 for a
period of 24 months from the date of issuance. Completion of the
financing is conditional on the Company raising not less than an
additional $2.2 million in the financings described below as well
as other customary closing conditions. Upon completion of the
HudBay Private Placement, HudBay will hold up to 14.5% of the
issued and outstanding shares of Halo on a non-diluted basis and up
to 19.9%, assuming full exercise of the Warrants by HudBay.
Marc Cernovitch, Chairman of Halo comments, "We believe HudBay's
investment in Halo is an endorsement of the Sherridon district and
its potential to join Snow Lake and Flin Flon as part of the
region's metal production pipeline and recognizes the value of Halo
and the quality and potential of its mineral properties."
Pursuant to the subscription agreement, HudBay shall, at its
option, be entitled to maintain its proportionate equity interest
in Halo through a right to participate in any subsequent issuances
of equity or securities convertible into equity.
An option agreement announced December 21, 2009 allows HudBay to
earn up to a 67.5% joint venture interest in a 1.1 square kilometer
area of the 200 square kilometer Sherridon VMS Property in Manitoba
which hosts the Cold and Lost mineralization. Results from the
recent 13 hole drill program completed at the Lost deposit are
described in Halo's December 1, 2010 news release.
The Company's primary use of the proceeds from this financing
will be to fund exploration on the Sherridon Property.
Brokered Private Placement
Halo has entered into an engagement letter with Loewen,
Ondaatje, McCutcheon Limited ("LOM") pursuant to which LOM, along
with D&D Securities Inc. (together, the "Agents"), will assist
Halo on a marketed private placement basis in raising a total of
$2,000,000 through the issuance of units of Halo (the "Brokered
Private Placement") to subscribers resident in the Provinces of
British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec,
Nova Scotia and certain offshore jurisdictions. The units will have
the same terms and conditions as the Units subscribed for by
HudBay, as described above.
Halo will pay the Agents a cash commission of 7% of the funds
raised through the Brokered Private Placement. In addition, Halo
will issue to the Agents non-transferable warrants ("Agents'
Compensation Warrants") to acquire units in the amount that is
equal to 10% of the number of units sold for a period of 24 months
from the date of issuance. Each of the Agents' Compensation
Warrants will entitle the holder to acquire one unit of Halo having
the same terms and conditions as the units sold under the Brokered
Private Placement. The Company may increase the size of the
Brokered Private Placement by up to 20%.
Non-Brokered Private Placement
Halo has also arranged a non-brokered private placement (the
"Non-Brokered Private Placement") to raise up to $672,500 through
the sale of up to 1,345,000 units to subscribers resident in the
Provinces of British Columbia, Alberta, Saskatchewan, Manitoba and
Ontario and certain offshore jurisdictions having the same terms
and conditions as the Units sold to HudBay and under the Brokered
Private Placement. Halo may pay a finder's fee to arm's length
parties in an amount to be determined.
All of the Units issued under the HudBay Private Placement,
Brokered Private Placement and Non-Brokered Private Placement will
be subject to a four month hold period. The HudBay Private
Placement, Brokered Private Placement and Non-Brokered Private
Placement are subject to acceptance by the TSX Venture Exchange.
The proceeds of this financing and the Brokered Private Placement
will be used for mineral exploration and general working capital
purposes.
ON BEHALF OF THE BOARD OF DIRECTORS
Marc Cernovitch, Chairman
About Halo Resources Ltd.
Halo is a Canadian-based resource company focused on the
acquisition of near production base and precious base metal
deposits. The Company's focus is the 200 sq. km. Sherridon VMS
Property, a combination of mature and grassroots volcanogenic
massive sulphide (VMS) copper, zinc and gold exploration
opportunities. A 2008 NI43-101 compliant copper-zinc resource, for
four of the known deposits in the district, was completed in less
than 18 months. The Company has a joint venture interest in the
Duport Property, an advanced gold property near Kenora, Ontario and
is the operator for several contiguous joint venture properties in
WestRedLake covering 45 sq. km. The Company is operated by an
experienced management team with a growth strategy to develop a
diversified portfolio of advanced mining projects.
Forward Looking Statements
This Company Press Release may contain certain "forward-looking"
statements and information relating to the Company that are based
on the beliefs of the Company's management as well as assumptions
made by and information currently available to the Company's
management. Such statements reflect the current risks,
uncertainties and assumptions related to certain factors including,
without limitations, competitive factors, general economic
conditions, customer relations, relationships with vendors and
strategic partners, the interest rate environment, governmental
regulation and supervision, seasonality, technological change,
changes in industry practices, and one-time events. Should any one
or more of these risks or uncertainties materialize, or should any
underlying assumptions prove incorrect, actual results may vary
materially from those described herein.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Contacts: Halo Resources Ltd. Michael Joyner IR 416-619-7539
416-601-9046 (FAX) ir@halores.com First Canadian Capital Corp. Dan
Boase 416-742-5600 or Toll Free: 1-866-580-8891 www.halores.com
Halo Resources Ltd. (TSXV:HLO)
Graphique Historique de l'Action
De Mai 2024 à Juin 2024
Halo Resources Ltd. (TSXV:HLO)
Graphique Historique de l'Action
De Juin 2023 à Juin 2024