TSX-V Trading Symbol: HRC Tel.: 604 - 638 8005
E-mail: email@example.com Website: www.helioresource.com
VANCOUVER, April 8 /CNW/ - Helio Resource Corp. (TSX-V:HRC) ("Helio" or
the "Company") is pleased to announce that it has closed the previously
announced 8,000,000 unit Brokered Private Placement and the 7,000,000 unit
Non-Brokered Private Placement (see news release dated March 13, 2009), for
gross proceeds to the Company of $5,250,000.
$2,800,000 Brokered Private Placement
The Company engaged Dundee Securities Corporation, Primary Capital Inc.,
Toll Cross Securities, and PI Financial Corp. as agents (the "Agents") to sell
on a Brokered Private Placement basis 8,000,000 units (the "Units") of Helio
at a price of $0.35 per Unit for total gross proceeds to the Company of
$2,800,000 (the "Offering").
Each Unit consists of one common share plus one half of one transferable
common share purchase warrant with each whole purchase warrant exercisable
into a common share at a price of $0.50 in the first year and $0.60 in the
second year following the closing. The warrants will not be listed for
In connection with the Offering, the Agents received a cash commission of
6% of the gross proceeds ($168,000) raised under the Offering plus broker
warrants (the "Broker Warrants") equal to 6% of the number of Units sold
(480,000 Broker Warrants) under the Offering. The Broker Warrants are
exercisable into common shares at a price of $0.35 per Broker Warrant until
April 8, 2011.
The common shares issued as a result of this Offering will have a
statutory 4 month hold period, such hold period expiring on August 9, 2009.
$2,450,000 Non-Brokered Private Placement
The Company also closed a non-brokered private placement of 7,000,000
units having the same terms as the Units for net proceeds to the Company of
$2,450,000. Macquarie Bank Limited is the sole placee and, as a result of the
placement, will own approximately 10.7% of the issued and outstanding share
capital of the Company (up to approximately 15.5% on a partially diluted
basis, assuming the exercise of all of its warrants). A compensation fee
comprising 210,000 warrants, exercisable into common shares at a price of
$0.35 per share, was paid in connection with this placement, such warrants are
exercisable until April 8, 2011.
The common shares issued as a result of this non-brokered private
placement will have a statutory 4 month hold period, such hold period expiring
on August 9, 2009.
The net proceeds of the private placements will be used by Helio for
advancement of the SMP gold project in Tanzania and for general corporate
These securities being offered have not been, and will not be, registered
under the United States Securities Act of 1933, as amended (the "U.S.
Securities Act") and may not be offered or sold in the United States or to, or
for the benefit of, U.S. persons (as defined in Regulation S under the U.S.
Securities Act) absent U.S. registration or an applicable exemption from the
U.S. registration requirements. This release does not constitute an offer for
sale of securities in the United States.
ON BEHALF OF THE BOARD OF DIRECTORS
"Richard D. Williams" "Chris MacKenzie"
Richard D. Williams, P.Geo Christopher J. MacKenzie, C.Geol.
The TSX Venture Exchange does not accept responsibility for the
adequacy or accuracy of this release.
This news release contains certain statements that may be deemed
"forward-looking statements". All statements in this release, other than
statements of historical fact, that address events or developments that the
Company expects to occur, are forward looking statements. Forward looking
statements are statements that are not historical facts and are generally, but
not always, identified by the words "expects", "plans", "anticipates",
"believes", "intends", "estimates", "projects", "potential" and similar
expressions, or that events or conditions "will", "would", "may", "could" or
"should" occur. Although the Company believes the expectations expressed in
such forward-looking statements are based on reasonable assumptions, such
statements are not guarantees of future performance and actual results may
differ materially from those in forward looking statements. Factors that could
cause the actual results to differ materially from those in forward-looking
statements include market prices, exploitation and exploration success,
continued availability of capital and financing and general economic, market
or business conditions. Investors are cautioned that any such statements are
not guarantees of future performance and actual results or developments may
differ materially from those projected in the forward-looking statements.
Forward looking statements are based on the beliefs, estimates and opinions of
the Company's management on the date the statements are made. The Company
undertakes no obligation to update these forward-looking statements in the
event that management's beliefs, estimates or opinions, or other factors,
For further information:
For further information: Richard D. Williams at (604) 638-8005 or by
e-mail to firstname.lastname@example.org