December 31, 2005
On October 19, 2005, Balloch Resources Ltd. (TSX: BHX), a mining company, completed a private placement of 14 million subscription receipts for aggregate gross proceeds of $17.5 million. Each subscription receipt entitles the holder to receive one common share of Balloch without payment of any additional consideration, subject to adjustment in certain events.
GMP Securities Ltd., Quest Securities Corporation and Haywood Securities Inc., acted as agents on a best efforts basis in connection with the private placement.
The gross proceeds of the offering less the agents’ estimated out-of-pocket expenses will be held in escrow and will be released to Balloch upon satisfaction of certain escrow release conditions. If the escrow release conditions are not satisfied prior to December 31, 2005, the escrowed proceeds will be used by Balloch, together with other funds on hand, to repurchase the subscription receipts.
Wildeboer Dellelce LLP represented the agents with a team including Derek Sigel, Al Wiens and Geoff Cher (corporate and securities).