|Mon Jan 21, 2008|
Helio Closes $5,250,000 Private Placement
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES NOR FOR DISSEMINATION IN THE UNITED STATES.
Helio Resource Corp. ("Helio" or the "Company") (TSX-V: HRC) is pleased to announce that, effective January 18, 2008, the Company has closed the previously announced non-brokered private placement (the "Private Placement" - see news release dated December 5, 2007).
The purchasers of the Units in connection with the Private Placement were Dundee Resources Limited ("Dundee") and an affiliate. Dundee is a wholly-owned subsidiary of Dundee Corporation (DCA-TSX) and carries out the resource investments and initiatives of Dundee Corporation.
The Private Placement was fully subscribed and the Company issued 7,000,000 Units of the Company at a price of $0.75 per Unit for gross proceeds of $5,250,000. Each Unit comprised one common share and one half of one common share purchase warrant. Subject to the acceleration provision discussed below, each whole warrant entitles the holder to purchase one common share of the Company at a price of $0.85 until January 18, 2010. If, after June 30, 2008, the common shares of the Company trade at a price of $1.25 or greater for a period of 21 consecutive days, the Company shall be entitled to accelerate the expiry date of the warrants by providing 30 days written notice to the holder of the warrants. No commission or finders fees were paid in connection with the Private Placement. The common shares and warrants comprising the Units are subject to a four month hold period that expires May 19, 2008.
As part of the transaction, Colin Jones has been appointed to the Board of Directors of the Company, subject to the approval of the TSX Venture Exchange. Colin Jones is a representative of Dundee.
Following the closing of the Private Placement, Dundee and its affiliates own and/or have control and direction over 8,360,500 common shares and 4,400,000 share purchase warrants representing approximately 19.46% of the issued and outstanding shares of the Company on an undiluted basis or an approximate 26.94% interest assuming the conversion of all warrants held by Dundee and its affiliates. As required by TSX Venture Exchange policies, the Company has obtained the written approval of a majority of the disinterested shareholders to the Private Placement.
The proceeds of the Private Placement will be used by Helio for advancement of the SMP gold project in Tanzania and general corporate working capital.
For additional information, please contact Richard Williams or Irene Dorsman at +1 604 638 8007 or by e-mail to firstname.lastname@example.org or email@example.com.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
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