BELMONT CLOSES 2nd TRANCHE OF PRIVATE PLACEMENT FOR $157,000
Vancouver, B.C. Canada, March 1, 2017 - Belmont Resources Inc. (TSX.V: BEA; FSE: L3L1; ("Belmont", or the "Company").
Further to our news release of February 22 and 27th, 2017, the Company has closed the second tranche of the private placement.
The Company has issued 3,140,000 units (the “Units”) at a price of $0.05 per Unit for gross proceeds of $157,000 in the 2nd tranche. Each Unit will consist of one common share of the Company and one transferable share purchase warrant (a “Warrant”). Each whole warrant will permit the holder to acquire one additional share of the Company at a price of $0.08 in the first year (up to March 1, 2018) and at $0.10 in the second year after closing on or before March 1, 2019. Fifteen placees participated, including three pros and one insider/director.
In addition to relying upon other available prospectus exemptions to effect the private placement, a portion of the private placement is being completed in accordance with the exemption set out in BC Instrument 45-536 (Exemption from prospectus requirement for certain distributions through an investment dealer), (the “Investment Dealer Exemption”). The Company also confirms there is no material fact or material change related to the Company which has not been generally disclosed.
The Company is paying finder’s fees in the amount of $8,500 in cash and 170,000 warrants that are exercisable into common shares under the same terms as described above. The Common Shares and Warrants are subject to a statutory hold period until July 2, 2017.
The Company intends to use the net proceeds from the two tranches of the private placement completed ($367,500) for drilling and exploration on the Kibby Basin, Nevada property (approx. $150,000), further property acquisitions ($35,000), and general working capital.
The working capital use of proceeds comprises the following (maximum/minimum for the next six months of estimated operating expenditures): Consulting fees $30,000/$15,000; Legal and audit $15,000/$10,000; Rent, Office & Miscellaneous $16,000/$11,000; Regulatory Fees $8,500/$7,500; Salaries & Admin. $60,000/$60,000; Transfer Agent Fees $5,000/$3,500; Travel & Promotion $48,000/$35,000.
Further to our news release of February 15, 2017, the Company has closed the first tranche of the private placement.
The Company has issued 4,210,000 units (the "Units") at a price of $0.05 per Unit for gross proceeds of $210,500. Each Unit will consist of one common share of the Company and one transferable share purchase warrant (a "Warrant"). Each whole warrant will permit the holder to acquire one additional share of the Company at a price of $0.08 in the first year (up to February 22, 2018) and at $0.10 in the second year after closing on or before February 22, 2019. Nine placees participated, two being directors/insiders each subscribing for 500,000 units.
The Company is paying finder's fees in the amount of 42,000 warrants that are exercisable into common shares under the same terms as described above. The Common Shares and Warrants are subject to a statutory hold period until June 23, 2017.
The Company intends to use the net proceeds from the private placement for drilling and exploration on the Kibby Basin, Nevada property and general working capital.
About Belmont Resources Inc.
On March 30, 2016; the Company acquired sixteen placer (16) mining claims, representing 1036 hectares (2,560 acres) in Esmeralda County, Nevada, U.S.A. The Kibby Basin property is located 65 km north of Clayton Valley, Nevada-U.S.A. The Company believes the property to be highly prospective to host lithium.
On July 11, 2016; the Company reported it has arranged the staking of 213 x 20 acre additional placer mineral claims totaling approx. 1724 hectares ( 4,260 acres), adjoining the Kibby 16, increasing the total Kibby Basin land position (the "Property") to 2760 hectares (6,820 acres).
In 50/50 ownership with International Montoro Resources Inc., Belmont has acquired and is exploring joint venture opportunities for its two significant uranium properties (Crackingstone -982 ha & Orbit Lake - 11,109 ha) in the Uranium City District in Northern Saskatchewan, Canada.
ON BEHALF OF THE BOARD OF DIRECTORS
This Press Release may contain forward-looking statements that may involve a number of risks and uncertainties, based on assumptions and judgments of management regarding future events or results that may prove to be inaccurate as a result of exploration and other risk factors beyond its control. Forward looking statements in this news release include statements about the possible raising of capital and exploration of our properties. Actual events or results could differ materially from the Companies forward-looking statements and expectations. These risks and uncertainties include, among other things, that we may not be able to obtain regulatory approval; that we may not be able to raise funds required, that conditions to closing may not be fulfilled and we may not be able to organize and carry out an exploration program in 2016; and other risks associated with being a mineral exploration and development company. These forward-looking statements are made as of the date of this news release and, except as required by applicable laws, the Company assumes no obligation to update these forward-looking statements, or to update the reasons why actual results differed from those projected in the forward-looking statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as the term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.