Blue Note Closes $2.3 Million PPBlue Note Closes Brokered Private Placement for $2.3 Million
/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION INTHE U.S./
MONTREAL, Dec. 22 /CNW Telbec/ - Blue Note Mining Inc. (TSXV: BNT)("Blue Note" or the "Company") announces that it has closed apreviously-announced brokered private placement (the "Private Placement") with D&D Securities Inc. (the "Agent") of 9,518,334 flow-through shares at a price of
.15 each for gross proceeds of$1,427,750 and 7,254,166 units, each at a price of
.12 and comprised of one common share andone common share purchase warrant for gross proceeds of $870,500. Eachwarrant entitles the holder to acquire one common share at
.25 for aperiod of 24 months following the closing of the Private Placement. Inthe event that the common shares of Blue Note trade at
.40 or higher(on a volume weighted adjusted price) for a period of 15 days after thedate that is 4 months from closing, Blue Note will have the option toaccelerate the expiry date of the warrants to 30 days from notice towarrants holders of such accelerated expiry date. The total grossproceeds of the Private Placement are $2,298,250.
These securities were issued pursuant to applicable prospectusexemptions and will be subject to a statutory hold period of fourmonths and one day from closing. Insiders of the Company havesubscribed under the Private Placement for 166,667 flow-through sharesfor a total consideration of $25,000. Closing of the Private Placementremains subject to the approval of the TSX Venture Exchange.
The Company has paid the Agent, Minvestec Capital Corp. and otherintermediaries $160,878 in commissions from the gross proceeds of thePrivate Placement. In addition, the Company has issued to the Agent,Minvestec Capital Corp. and the other intermediaries options topurchase that number of common shares from the treasury of the Companyequal to 7% of the number of flow-through common shares and unitssubscribed for under the offering. These options are exercisable at aprice of
.20 for a period of 18 months from the closing date.
The net proceeds from the Private Placement of the common shares shallbe used for working capital and for general corporate purposes.Proceeds from the Private Placement of the flow-through shares will beused to finance the drill campaigns at Blue Note's Croinor and Chimoprojects, which will constitute Canadian exploration expenses (asdefined in the Income Tax Act (Canada)) and be renounced by the Company effective on or beforeDecember 31, 2010.
About Blue Note Mining
Blue Note Mining is a mineral exploration and mining companyheadquartered in Montreal with properties located in known gold regionsof Canada, including the prolific Val-d'Or region of Quebec andnorthern New Brunswick.