https://www.marketwirecanada.com/mw/rel_ca.jsp?id=984910&k=bravo
Bravo Venture Group Inc.
TSX VENTURE:
BVG
FRANKFURT: B6I
May 05, 2009 16:32 ET
Bravo Engages Haywood for $5.0 Million Private Placement
VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 5, 2009) -
NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES
Bravo Venture GroupInc. (TSX VENTURE:BVG)(FRANKFURT:B6I) has announced that it has engagedHaywood Securities Inc. to complete a private placement offering, on amarketed reasonable best efforts agency basis, to raise gross proceedsof $5.0 million from the sale of flow-through units and common shareunits to raise the respective amounts of $4.0 million and $1.0 million.
The private placement financing is expected to close on or about May 26th, 2009 and will consist of:
Flow through Units:
Up to 13,333,333 "flow-through units" priced at $0.30 perflow-through unit. Each of these units will consist of one flow-throughshare and one-half non flow-through warrant with one whole warrantexercisable to purchase one common share at a price of $0.40 per share,for a period of two years.
Common share units:
Up to 3,333,333 "common share units" priced at $0.30 per commonshare unit. Each of these units will consist of one common share andone share purchase warrant, exercisable to purchase one common share ata price of $0.35 per share for a period of two years.
The shares will be offered and sold by way of private placementexemptions in all provinces and jurisdictions of Canada, other thanQuebec, as to be mutually agreed to by the Company and the Agent, intothe United States via Rule 144A or in such other manner as not torequire registration under the United States Securities Act of 1933, asamended, and into jurisdictions outside of Canada and the US.
The offering is subject to certain conditions including, but notlimited to, the receipt of all necessary corporate and regulatoryapprovals, including the approval of the TSX Venture Exchange.
Net proceeds will be used to fund a 7,500-8,000 m drilling programat Homestake Ridge, with a focus on possible expansion to the NW of thehigh-grade gold zone and also to test an as yet undrilled 600 metre gapbetween an overlying hangingwall silver-rich horizon at the HomestakeMain deposit and the Homestake Silver target, where, to date, only sixholes have been drilled. In addition to the drilling program, theCompany aims to update the resource model at Homestake Ridge andconduct initial mine and metallurgical studies, as well as preliminarybaseline studies. A drilling program of 1,200-1,500 metres is plannedon significant precious metals/VMS targets on Woewodski Island SEAlaska.
The Agent will receive a cash commission equal to 6% of the grossproceeds raised in this private placement (for subscribers originatedby the Agent) and compensation warrants (the "Compensation Warrants")entitling the Agent to purchase such number of common share units as isequal to 10.0% of the aggregate number of flow through units and commonshare units sold to subscribers originated by the Agent pursuant to theprivate placement at an exercise price equal to the issue price of theflow through units and the common share units for a period of 24 monthsfollowing the closing date.
The securities being offered have not been registered under theU.S. Securities Act of 1933, as amended, and may not be offered or soldin the United States in the absence of registration or an applicableexemption from the registration requirements. This press release doesnot constitute an offer to sell or the solicitation of an offer topurchase securities in the United States.
Bravo also reportedtoday that the company plans a $250,000 non-brokered private placementof common share units at the same terms as that being offered in thebrokered private placement of common share units.
About Bravo Venture Group Inc.
Bravo's explorationactivities are focused within North America, specifically in N.W.British Columbia, Nevada, and S.E. Alaska. The VMS/Epithermalgold/silver Homestake Ridge project in British Columbia is advancingwith excellent drill results and a NI43-101 compliant technicalevaluation which reported an inferred resource of 903,231 ounces ofgold and 5,745,746 ounces of silver contained within 11.9 milliontonnes with an average grade of 2.36 g/t Au and 15.0 g/t Ag using acut-off grade of 0.5 g/t gold(1). The 2008 exploration programconsisted of an extensive 42-hole, 8,400 metre multi-rig drill programthat demonstrated continuity of mineralization that remains open downdip and along strike to the southeast and northwest. A similar drillprogram will start during the summer, 2009. The Woewodski Islandprospect in S.E. Alaska is a precious-metal rich VMS target, which lieswithin a mineralized trend that hosts both the Greens Creek and WindyCraggy VMS deposits. A drill program is planned during Q2/Q3. Thecompany also has a substantial land package consisting of thirteenproperties located in the Battle Mountain/Eureka trend, Nevada.
On behalf of the Board of Directors
Joseph A. Kizis Jr., Director, President, Bravo Venture Group, Inc.
(1) An 'Inferred Mineral Resource' is that part of a MineralResource for which quantity and grade or quality can be estimated onthe basis of geological evidence and limited sampling and reasonablyassumed, but not verified, geological and grade continuity. Theestimate is based on limited information and sampling gathered throughappropriate techniques from locations such as outcrops, trenches, pits,workings and drill holes. Due to the uncertainty which may attach toInferred Mineral Resources, it cannot be assumed that all or any partof an Inferred Mineral Resource will be upgraded to an Indicated orMeasured Mineral Resource as a result of continued exploration.Confidence in the estimate is insufficient to allow the meaningfulapplication of technical and economic parameters or to enable anevaluation of economic viability worthy of public disclosure. InferredMineral Resources must be excluded from estimates forming the basis offeasibility or other economic studies (43-101CP, CIM, 2001).
NeitherTSX Venture Exchange nor its Regulation Services Provider (as that termis defined in the policies of the TSX Venture Exchange) acceptsresponsibility for the adequacy or accuracy of this release.