BLUE RIVER RESOURCES LTD. ANNOUNCES PRIVATE PLACEMENT
Blue River Resources Ltd. will sell, on a private-placement basis, units of the company at a price of five cents per unit, for gross aggregate proceeds of up to $1.25-million.
Each unit will comprise one common share of the company and one-half share purchase warrant of the company; and each full warrant will entitle the holder to purchase an additional share of the company for a period of two years following the date of issuance of the warrants at a price of nine cents per warrant share. A director of the company will be purchasing units in the private placement.
The company reserves the right to pay finders' fees to its agents with respect to the private placement in accordance with, and subject to, TSX Venture Exchange policies.
The shares and warrants issued pursuant to the private placement, and any warrant shares issued on exercise of the warrants are subject to four-month resale restrictions.
The proceeds raised from the private placement will be used for the Banlung gold project, Cambodia, and for general corporate purposes.
The Banlung gold project, Cambodia
The exploration target on the Banlung gold project is a surface gold anomaly measuring approximately four square kilometres called the Okalla West gold anomaly. Within this area is a high gold pan concentrate zone measuring 40 hectares, which is the initial focus of drilling.
Six hundred shallow drill holes have been completed to date, of a total of 1,200 holes planned to be drilled over the next 60 days. Drill results will be reported when received.
Blue River initially has the right to participate in up to a 50-per-cent interest of the Banlung licence from Angkor Gold Corp., after the completion of a total investment of $3.5-million (U.S.) in exploration expenditures over a four-year period. Blue River may then exercise its option on an additional 20-per-cent interest of the Banlung tenement through the commission and completion of a bankable feasibility study on the property or portion thereof.
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