/NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRE
SERVICES/
VANCOUVER, Feb. 19, 2019 /CNW/ - Vancouver, British Columbia – Bluestone
Resources Inc. (TSXV:BSR | OTCQB:BBSRF) (the "Company" or
"Bluestone") announces that the Company has entered into an
agreement with Cormark Securities Inc. to act as lead underwriter
(the "Lead Underwriter") and a syndicate of underwriters
(collectively with the Lead Underwriter, the "Underwriters") to
purchase on a "bought deal" private placement basis (the
"Offering"), up to $10,000,000 of
units of the Company (the "Units") at a price of $1.25 per Unit (the "Offering Price").
Each Unit will consist of one common share of the Company (a
"Unit Share") and one-half of one common share purchase warrant
(each whole common share purchase warrant, a "Warrant"). Each
Warrant will entitle the holder to acquire one common share of the
Company for 24 months from the closing of the Offering at a price
of $1.65.
The Company has also granted to the Underwriters the option to
sell up to an additional $5,000,000
of Units, exercisable until the date which is two days prior to the
closing date.
The net proceeds of the Offering will be used towards advancing
the Cerro Blanco Gold Project and for general corporate
purposes.
Closing of the offering is anticipated to occur on or before
March 12, 2019 and is subject to
receipt of applicable regulatory approvals including approval of
the TSXV.
This news release does not constitute an offer of securities for
sale in the United States. The
securities being offered have not been, nor will they be,
registered under the Unites States Securities Act of 1933, as
amended, and such securities may not be offered or sold within
the United States absent U.S.
registration or an applicable exemption from U.S. registration
requirements.
About Bluestone Resources Inc.
Bluestone Resources is a mineral exploration and development
company that is focused on advancing its 100%-owned Cerro Blanco
Gold and Mita Geothermal projects located in Guatemala. A Feasibility Study on Cerro Blanco returned robust economics with a
quick pay back. The average annual production is projected to be
146,000 ounces per year over the first three years of production
with all-in sustaining costs of $579/oz (as defined per World Gold Council
guidelines, less corporate general and administration costs). The
Company trades under the symbol "BSR" on the TSX Venture Exchange
and "BBSRF" on the OTCQB.
On Behalf of Bluestone Resources Inc.
"Darren Klinck"
Darren Klinck | President,
Chief Executive Officer & Director
Neither the TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Forward Looking Statements
This press release contains "forward-looking information" within
the meaning of Canadian securities legislation and "forward-looking
statements" within the meaning of the United States Private
Securities Litigation Reform Act of 1995 (collectively,
"forward-looking statements"). All statements, other
than statements of historical fact, that address activities, events
or developments that Bluestone Resources Inc. ("Bluestone"
or the "Company") believes, expects or anticipates will or
may occur in the future including, without limitation: the
conversion of the inferred mineral resources; increasing the amount
of measured mineral and indicated mineral resources; the proposed
timeline and benefits of further drilling; the proposed timeline
and benefits of the Feasibility Study; statements about the
Company's plans for its mineral properties; Bluestone's business
strategy, plans and outlook; the future financial or operating
performance of Bluestone; capital expenditures, corporate general
and administration expenses and exploration and development
expenses; expected working capital requirements; the future
financial estimates of the Cerro Blanco Project economics,
including estimates of capital costs of constructing mine
facilities and bringing a mine into production and of sustaining
capital costs, estimates of operating costs and total costs, net
present value and economic returns; proposed production timelines
and rates; funding availability; resource estimates; and future
exploration and operating plans are forward-looking statements.
These forward-looking statements reflect the current expectations
or beliefs of the Company based on information currently available
to Bluestone and often use words such as "expects", "plans",
"anticipates", "estimates", "intends", "may" or variations thereof
or the negative of any of these terms.
All forward-looking statements are made based on the Company's
current beliefs as well as various assumptions made by them and
information currently available to them. Generally, these
assumptions include, among others: the ability of Bluestone to
carry on exploration and development activities; the price of gold,
silver and other metals; there being no material variations in the
current tax and regulatory environment; the exchange rates among
the Canadian dollar, Guatemalan quetzal and the United States dollar remaining consistent
with current levels; the presence of and continuity of metals at
the Cerro Blanco Project at estimated grades; the availability of
personnel, machinery and equipment at estimated prices and within
estimated delivery times; metals sales prices and exchange rates
assumed; appropriate discount rates applied to the cash flows in
economic analyses; tax rates and royalty rates applicable to the
proposed mining operation; the availability of acceptable
financing; anticipated mining losses and dilution; success in
realizing proposed operations; anticipated timelines for community
consultations and the impact of those consultations on the
regulatory approval process.
Forward-looking statements are subject to a number of risks and
uncertainties that may cause the actual results of the Company to
differ materially from those discussed in the forward-looking
statements and, even if such actual results are realized or
substantially realized, there can be no assurance that they will
have the expected consequences to, or effects on, Bluestone.
Factors that could cause actual results or events to differ
materially from current expectations include, among other things:
risks relating to variations in the mineral content within the
mineral identified as mineral resources from that predicted; risks
and uncertainties related to expected production rates, timing and
amount of production and total costs of production; risks and
uncertainties related to ability to obtain or maintain necessary
licenses, permits, or surface rights; risks associated with
technical difficulties in connection with mining development
activities; risks and uncertainties related to the accuracy of
mineral resource estimates and estimates of future production,
future cash flow, total costs of production and diminishing
quantities or grades of mineral resources; risks associated with
geopolitical uncertainty and political and economic instability in
Guatemala; risks and uncertainties
related to interruptions in production; the possibility that future
exploration, development or mining results will not be consistent
with the Company's expectations; uncertain political and economic
environments and relationships with local communities; variations
in rates of recovery and extraction; developments in world metals
markets; risks related to fluctuations in currency exchange rates;
as well as those factors discussed under "Risk Factors" in the
Company's Amended and Restated Annual Information Form.
Any forward-looking statement speaks only as of the date on
which it was made, and except as may be required by applicable
securities laws, Bluestone disclaims any intent or obligation to
update any forward-looking statement, whether as a result of new
information, future events or results or otherwise. Although
Bluestone believes that the assumptions inherent in the
forward-looking statements are reasonable, forward-looking
statements are not guarantees of future performance and accordingly
undue reliance should not be put on such statements due to their
inherent uncertainty. There can be no assurance that
forward-looking statements will prove to be accurate, and actual
results and future events could differ materially from those
anticipated in such statements.
Non-IFRS Financial Performance Measures
The Company has included certain non-International Financial
Reporting Standards ("IFRS") measures in this new release.
The Company believes that these measures, in addition to measures
prepared in accordance with IFRS, provide investors an improved
ability to evaluate the underlying performance of the Company and
to compare it to information reported by other companies. The
non-IFRS measures are intended to provide additional information
and should not be considered in isolation or as a substitute for
measures of performance prepared in accordance with IFRS. These
measures do not have any standardized meaning prescribed under
IFRS, and therefore may not be comparable to similar measures
presented by other issuers.
All-in sustaining costs
The Company believes that all-in sustaining costs
("AISC") more fully defines the total costs associated with
producing gold.
The Company calculates AISC as the sum of refining costs, third
party royalties, site operating costs, sustaining capital costs and
closure capital costs all divided by the gold ounces sold to arrive
at a per ounce amount. Other companies may calculate this measure
differently as a result of differences in underlying principles and
policies applied. Differences may also arise due to a different
definition of sustaining versus non-sustaining capital.
AISC and total cash costs reconciliation
ASIC and total cash costs are calculated based on the
definitions published by the World Gold Council ("WGC") (a
market development organization for the gold industry comprised of
and funded by 18 gold mining companies from around the world). The
WGC is not a regulatory organization.
SOURCE Bluestone Resources Inc.