Highland Resources closes $1.4-million financing

2009-11-02 20:11 ET - News Release

Mr. Roger Blair reports

HIGHLAND CLOSES PRIVATE PLACEMENT

Further to its news release in Stockwatch on Sept. 18, 2009, Highland Resources Inc. has completed its private placement for gross proceeds of $1,408,224.45. The private placement consisted of:

• 5,691,498 flow-through common shares at a price of 15 cents per share;
• 3,696,666 non-flow-through units at a price of 15 cents per unit.

Each unit consists of one common share of the company and one-half non-transferable share purchase warrant. Each whole warrant will entitle the holder to purchase one additional common share of the company at a price of 20 cents if exercised in the first year or 30 cents if exercised in the second year.

The company paid a cash commission in the total amount of $77,248, equal to 8 per cent of the gross proceeds to certain finders. In addition, the company issued finders' warrants entitling the holders to purchase up to 743,731 shares at a price of 20 cents, exercisable over a period of 12 months.

All securities issued by the company pursuant to this private placement are subject to a four-month hold period expiring on March 1, 2010.

The net proceeds of the private placement will be added to working capital and will be used to finance the 2009 to 2010 exploration program for the Rickaby property, designed by GeoVector Management Services Inc., of Ottawa, Ont. GeoVector was engaged by the company to manage the exploration program on the Rickaby property this summer and completed the initial field work (see news release in Stockwatch on June 23, 2009).

The Rickaby property is a high-grade gold prospect comprising 88 mineral claims over 18,624 acres in the Beardmore-Geraldton belt in the Thunder Bay mining district, adjacent to Kodiak Exploration's Hercules project and 30 kilometres west of the Premier Gold mines. The Beardmore-Geraldton greenstone belt has produced 4,371,300 ounces of gold from 24 operations. Exploration by Kodiak on its Hercules gold project has produced drill results, including 15.59 grams per tonne (g/t) gold (Au) over 16.60 metres (see Kodiak's news release in Stockwatch on Sept. 18, 2006), with recent exploration defining long-strike-length zones of gold-bearing quartz veins, including channel sampling with 32.96 g/t over 11.6 metres (see Kodiak's news release in Stockwatch on Oct. 1, 2007). This exploration has illustrated the high-potential tenor and size of the targets that are currently on Highland's property.

MineralFields Group (a division of Pathway Asset Management) participated in Highland's private placement as to 2,666,666 flow-through common shares. MineralFields, based in Toronto, Vancouver and Calgary, is a mining fund with significant assets under administration that offers its tax-advantaged superflow-through limited partnerships to investors throughout Canada, as well as hard-dollar resource limited partnerships to investors throughout the world.