BELMONT APPLIES FOR WAIVER TO PRIVATE PLACEMENT PRICING AT $0.045 PER UNIT & CONTINUES KIBBY DRILLING
Vancouver, B.C. Canada, January 25, 2019 - Belmont Resources Inc. (TSX.V: BEA; FSE: L3L1; DTC Eligible - CUSIP 080499403); ("Belmont", or the "Company").
Private Placement Financing:
The Company will be making an application to the TSX Venture Exchange (the “Exchange”) for a waiver to the private placement price as the proposed subscription price is below the minimum allowed pursuant to the policies.
The Company proposes to proceed with a financing of up to $180,000 with 4.0 million units to be issued at $0.045. Each unit will be comprised of one common share and one transferable share purchase warrant ( a “Warrant”). Each whole warrant will permit the holder to acquire one additional common share of the Company at a price of $0.05 for one year from closing.
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 may pay commissions of 8% to eligible parties in connection with this financing, payable either in cash and/or in warrants. The Common Shares and Warrants are subject to a statutory hold period and the financing is subject to Exchange acceptance.
The Company intends to use the net proceeds from the private placement for continued exploration on its Kibby Basin-lithium property, Nevada. Approximately $100,000 will be expended on continued drilling of hole KB-4 (ie. drilling, assaying, geological consulting, downhole geophysics); Kibby Basin MT survey analysis, water permit application consulting and fees; and planning for additional infill drilling in the area. The balance of $80,000 working capital will be required as follows:
Regulatory fees - $5,000; Office Rent & Communication expenses - $12,000; Transfer Agent Fees - $3,000; Investor & Shareholder Relations including travel & advertising -$20,000; Professional Fees (Legal, Accounting & Year-End Audit) $22,000; Management Fees - $10,000; Finders Fees/Commissions $5,000; Unallocated $3,000.
Kibby Basin Drilling
Harris Drilling of San Diego, California is expecting to recommence drilling KB-4 in the Kibby Basin during the next week.
Soil and water samples will be taken from drill cuttings and from any significant water bearing layers and sent to ALS Canada Ltd. as previously tested. A compilation of the results of the drilling will be announced upon completion of the hole.
About Belmont Resources Inc.
Belmont owns the Kibby Basin Lithium project covering 2,056 hectares (5,080 acres) in Esmeralda County, Nevada, U.S.A. The Kibby Basin property is located 65 km north of Clayton Valley, Nevada the location of the only US Lithium producer. MGX Minerals Inc. (CSE: XMG) has currently earned a 25% interest in the Kibby project and has the right to increase this to 50% by expending an additional $300,000 on exploration and become the operator.
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.