Private Placement to raise C$ 10-12 million
Exchange: TSX V Symbol: BEL
VANCOUVER, March 23 /CNW/ - Belvedere Resources Ltd. (the "Company") is
pleased to announce that it has now signed the Final Agreement to acquire the
Hitura Nickel Mine from Outokumpu Mining Oy and the remaining 55% of Finn
Nickel (Suomen Nikkeli Oy).
Hitura is an operating mine and concentrate facility which currently
produces 2,200 tonnes per annum of nickel. As of December 2006 Hitura had
remaining reserves of 919,000 t @ 0.61% nickel, and remaining resources
(Measured + Indicated) of 1.7 Mt @ 0.71% nickel. The Hitura mine business will
be acquired from Outokumpu Mining Oy as a going concern with all personnel and
equipment including a 650,000 tonnes per annum capacity mill. In exchange
Outokumpu receives 7,482,843 Belvedere shares with half warrants attached. Of
those shares, 35% will have a 4 month hold with the remainder subject to an
eight month hold. Each whole warrant is exercisable at $1.33. The warrants are
non-transferable and valid for two years from the date of issue. In addition
Belvedere will issue 4,809,972 shares equivalent to the cash on balance at
time of signing ((euro)3.214 million). Those shares will be subject to a four
month hold and have no warrants attached.
Finn Nickel is an unlisted Finnish company with a number of advanced
nickel, copper and cobalt projects in southern Finland. Finn Nickel's current
resources are 21,000t nickel, 14,000t copper (Indicated); 15,000t nickel,
5,000t copper (Inferred) and 13,000t nickel, 30,000 t copper (Historical).
Belvedere acquired its initial 45% holding in Finn Nickel in 2006 for
(euro)1 million cash. The remaining 55% of Finn Nickel will be purchased from
the private shareholders in proportion to their holdings in Finn Nickel for
8,231,127 Belvedere shares. A further 1,496,569 Belvedere shares will be
issued to the private shareholders of Finn Nickel conditional on their
securing the necessary agreements for the rapid start-up of their nickel
operations prior to final closing of this transaction. Of the Finn Nickel
shares 35% will be subject to a 4 month hold, with the remainder subject to an
8 month hold period.
Final closing of the deal will occur in two parts, with the Finn Nickel
deal expected to be closed by the end of April 2007 and the Hitura deal
expected to be closed in late June 2007. The TSX Venture Exchange has given
conditional approval for the transaction.
Belvedere is undertaking a private placement to raise between C$
10-12 million at C$ 1.25 per common share with no warrants attached. The
Private Placement will be a non-brokered Private Placement handled by London
stockbrokers Ocean Equities Ltd. A finders fee will be payable to Ocean
Equities in accordance with the policies of the TSX Venture Exchange. The net
proceeds will be applied to the general working capital of the Company, and to
fast track the development of a number of the Finn Nickel projects.
Some of the statements contained herein may be forward-looking
statements, which involve known and unknown risks and uncertainties. Without
limitation, statements regarding future plans and objectives of the Company
are forward-looking statements that involve various degrees of risk.
Forward-looking statements in this release include statements regarding the
Company's expected future production of nickel, as well as any references to
the closing of the final transaction which is dependent on certain closure
procedures being successfully carried out. It is important to note that the
Company's actual results could differ materially from those in such
forward-looking statements. Factors that may affect expected future production
include typical problems or delays with mining and processing, failure to
convert resources into mineable reserves, and environmental permitting
problems. Factors that may lead to non-closure of the deal include closing
conditions not being fulfilled. This statement is prepared by Dr. Toby
Strauss, who is acting as Qualified Person in compliance with National
Instrument 43-101 with respect to this release.
SOURCES LTD. David Pym, CEO
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of the contents of this news
For further information:
For further information: David Pym: +44-7931-371869; Toby Strauss:
+353-87-9870344; Steve Cuthill: (604) 513-0007