Health & Fitness
Health and Fitness
Health and Fitness
Wed, February 22, 2012
Tue, February 21, 2012
February 21, 2012 14:45 ET
Black Smoker Corporate Update
- Initial Drill Targets Established at Fox Lake, Drill Permit Applied For - Potential Acquisition of Additional International Property - Proposed Financing in Anticipation of New Property Acquisition
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 21, 2012) -Black Smoker Ventures (CNSX:BSM) ("Black Smoker" or the "Company") is pleased to provide a corporate update.
Black Smoker has established drill targets on its Fox Lake property, is funded to commence drilling and has applied for drill permits. Additionally, the company is evaluating the acquisition of a new internationally based mineral exploration property. With goals to both complete this acquisition and commence drilling at Fox Lake, the Company is intending to complete a $1,000,000 financing.
The Company has engaged Leede Financial Markets Inc. ("Leede" or the "Agent") to act as agent on a best efforts basis in connection with a brokered private placement of up to 10,000,000 flow-through common shares (the "Flow-Through Shares") at a price of $0.10 per Flow-Through Share for gross proceeds of up to $1,000,000 (the "Offering").
All securities issued under the Offering will be issued under exemptions from the prospectus requirements by way of a confidential offering memorandum to investors in British Columbia, Alberta and Manitoba. The Flow-Through Shares will be subject to a statutory hold period of four months and a day from the date of issuance.
As compensation for acting as agent, Leede will receive a commission equal to 8% of the gross proceeds raised under the Offering and compensation options (the "Agent's Options") equal to 8% of the aggregate number of Flow-Through Shares sold under the Offering. Each Agent's Option will entitle Leede to purchase one common share of the Company at a price of $0.10 for a period of 24 months from the closing of the Offering. In addition, the Company will pay Leede a corporate finance fee of $10,000 (plus HST).
The net proceeds of the Offering will be used by the Company to incur exploration expenditures on the Company's Fox Lake Property in the Province of Manitoba.
About Black Smoker
Black Smoker is presently focused on the exploration of the Fox Lake Property in Manitoba, Canada. The Company will continue its core business while developing and assessing plans for the Fox Lake Property.
A total of approximately 12 million tonnes grading 1.82% copper and 1.78% zinc was produced from the Fox Mine in the years 1970 to 1985. Black Smoker is utilizing modern deep penetrating geophysical techniques to target new discoveries at depth and in proximity to the historic mine site.
Michael Moore, P.Geo., is an independent Qualified Person, as defined by NI 43-101, and has reviewed the technical aspects of this news release on behalf of the Company.
On behalf of the board of directors of:
BLACK SMOKER VENTURES INC.
Carson Seabolt, Chief Executive Officer
FORWARD-LOOKING STATEMENTS: This press release contains forward-looking statements, which address future events and conditions, which are subject to various risks and uncertainties. The Company's actual results and financial position could differ materially from those anticipated in such forward-looking statements as a result of numerous factors, some of which may be beyond the Company's control. These factors include: results of exploration activities and development of mineral properties, fluctuations in the marketplace for the sale of minerals, the inability to implement corporate strategies, the ability to obtain financing, currency fluctuations, general market and industry conditions and other risks disclosed in the Company's filings with Canadian Securities Regulators.
Forward-looking statements are based on the expectations and opinions of the Company's management on the date the statements are made. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise unless required by applicable securities law.
THE CNSX HAS NEITHER APPROVED NOR DISAPPROVED THE INFORMATION CONTAINED HEREIN.
