/THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO
U.S. NEWSWIRE SERVICES FOR DISSEMINATION IN THE UNITED STATES/
VANCOUVER, April 23, 2020 /CNW/ - Bluestone
Resources Inc. (TSXV:BSR | OTCQB:BBSRF) ("Bluestone" or the
"Company") announced today that it has entered into an
agreement with a syndicate of underwriters led by Canaccord Genuity
Corp. (the "Underwriters"), pursuant to which the Underwriters will
purchase, on a bought deal basis, 45,720,000 common shares (the
"Common Shares") of the Company at a price of C$1.75 per Common Share (the "Offering Price")
for aggregate gross proceeds to the Company of C$80,010,000 (the "Offering").
The Company has agreed to grant the Underwriters an
over-allotment option to purchase up to an additional 6,858,000
Common Shares at the Offering Price, exercisable, in whole or in
part, at any time and from time to time on or prior to the date
that is 30 days following the closing of the Offering to cover
over-allotments, if any, and for market stabilization purposes. If
this option is exercised in full, an additional C$12,001,500 in gross proceeds will be raised
pursuant to the Offering and the aggregate gross proceeds of the
Offering will be C$92,011,500.
The net proceeds from the Offering will be used to advance the
Cerro Blanco project, as well as for working capital and general
corporate purposes.
The Common Shares will be offered by way of a prospectus
supplement to be filed in all provinces of Canada, except Québec. The Common Shares will
also be sold to U.S. buyers on a private placement basis pursuant
to an exemption from the registration requirements of the United
States Securities Act of 1933, as amended, and other jurisdictions
outside of Canada provided that no
prospectus filing or comparable obligation arises.
The Offering is scheduled to close on or about May 4, 2020 and is subject to certain conditions
including, but not limited to, the receipt of all necessary
approvals including the approval of the TSX Venture Exchange and
the securities regulatory authorities.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy securities in the United States, nor shall there be any sale
of the securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful. The securities being
offered have not been, nor will they be, registered under the
United States Securities Act of 1933, as amended (the "1933 Act")
or under any U.S. state securities laws, and may not be offered or
sold in the United States absent
registration or an applicable exemption from the registration
requirements of the 1933 Act, as amended, and applicable state
securities laws.
About Bluestone Resources
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 the Board of Directors of Bluestone Resources
Inc.
"Jack Lundin"
Jack Lundin | CEO &
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 applicable United
States securities legislation (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: statements relating to
the Offering, including the proposed use of proceeds, the closing
date and receipt of regulatory approvals, estimates of
sustaining capital costs and production rates 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 Bluestone's
current beliefs as well as various assumptions made by Bluestone
and information currently available to Bluestone. Generally,
these assumptions include, among others: 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; currency
exchange rates; 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 operations; the availability of acceptable financing; the
impact of the novel coronavirus (COVID-19); anticipated mining
losses and dilution; success in realizing proposed operations; and
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 Bluestone 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 and uncertainties related to expected production rates;
timing and amount of production and total costs of production;
risks and uncertainties related to the ability to obtain, amend, 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
related to global epidemics or pandemics and other health crises,
including the impact of the novel coronavirus (COVID-19); risks and
uncertainties related to interruptions in production; the
possibility that future exploration, development, or mining results
will not be consistent with Bluestone's expectations; uncertain
political and economic environments and relationships with local
communities and governmental authorities; risks relating to
variations in the mineral content within the mineral identified as
mineral resources from that predicted; variations in rates of
recovery and extraction; developments in world metals markets; and
risks related to fluctuations in currency exchange rates. For a
further discussion of risks relevant to Bluestone, see "Risk
Factors" in the Company's annual information form for the year
ended December 31, 2019, available on
the Company's SEDAR profile at www.sedar.com.
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 news 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 have
been derived from the Company's financial statements, and applied
on a consistent basis, because the Company believes they are of
assistance in the understanding of the results of operations and
financial position. Please refer to the Company's Year End 2019
MD&A for an explanation of non-IFRS measures used.
SOURCE Bluestone Resources Inc.