SHELBURNE, NOVA SCOTIA--(Marketwire - June 6, 2007) - Black Bull Resources Inc. (TSX VENTURE:BBS) is pleased to announce that it has completed its previously announced, brokered private placement of 43,333,333 common shares at $0.15 per share for gross proceeds to Black Bull of $6.5 million. In connection with the private placement, PowerOne Capital Markets Limited, as agent, received a cash commission of $355,000 and 2,400,000 broker warrants. Each broker warrant is exercisable for one common share of Black Bull at a price of $0.15 at any time within the next 24 months. All securities issued pursuant to the private placement are subject to a 4-month hold period expiring on October 7, 2007. PowerOne Capital Markets Limited is a specialized merchant bank committed to financing and aiding emerging junior and small-cap companies.
Directors of Black Bull hold $500,000 of the Company's outstanding $850,000 of secured convertible debentures. Concurrent with the closing of the private placement, directors converted $450,000 of debentures for 3,000,000 common shares ($0.15 per share). The remaining $50,000 of the director-owned outstanding debentures is expected to be converted to 333,333 common shares within one week. All of these shares are subject to the balance of the 4-month hold period from the original debenture date of issue which expires on June 16, 2007.
Three persons now hold 10% or more of the Company's outstanding shares: Don Wright holds 18.3%, while Pinetree Resource Partnership and Firebird Global Master Fund II, Ltd. each hold 11%.
Richard Shearer, President & CEO, stated, "We are pleased with the interest shown by current and new investors in Black Bull. The funds from this offering will enable us to progress to the next phase of capital expansion which should lead to positive cash flow during 2008. We are also pleased with the continued support the Directors of the Company have shown by the conversion of their debentures. This will reduce our debt obligation allowing $500,000 for further Company development."
About Black Bull Resources Inc.
Black Bull Resources Inc. is a Canadian mining company based in Nova Scotia that operates the White Rock Mine near Shelburne. The Mine produces a bright-white, high-purity quartz, marketed under the Scotia White™ trademark which is used in a range of value-added, specialty products.
The White Rock Property also contains an identified resource of kaolin and mica which the Company plans to further develop when quartz operations become cash-flow positive.
Further detailed information may be obtained from the Company's website www.blackbullresources.com or corporate filings at www.SEDAR.com.
FORWARD-LOOKING STATEMENTS: This news release contains certain forward-looking statements. All statements, other than statements of historical fact, included herein, including without limitation statements regarding the Company's mining properties, development results or future plans, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed elsewhere in documents that are available to the public.
About this company Black Bull Resources Inc.