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 Tue Feb 15, 2011
Helio Closes Private Placements for $10.0 Million

 
"NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES."


Vancouver, February 15, 2011

Helio Resource Corp.
(TSX.V: HRC) ("Helio" or the "Company") is pleased to report that it has closed the previously announced brokered and non-brokered private placements for total gross proceeds of $10 million (see the Company's news release dated January 24, 2010).

The brokered private placement was completed through a syndicate of agents led by Scotia Capital Inc. and Stifel Nicolaus Canada Inc., and including PI Financial Corp. and Macquarie Capital Markets Canada Ltd. (the "Agents"), in which the Agents raised $8,000,000 through the sale of 20,000,000 units (the "Units") at a price of $0.40 per Unit. Each Unit consists of one common share of the Company (a "Common Share") and one-half of one common share purchase warrant of the Company (each whole such common share purchase warrant, being referred to as a "Warrant").

Each Warrant entitles the holder thereof to acquire one Common Share at any time until February 15, 2013 at a price of $0.50 per common share, subject to accelerated expiry. In the event that the closing price of the Common Shares is greater than $0.70 for a period of 20 consecutive trading days at any time after the closing of the Offering, the Company will have the option to accelerate the expiry date of the Warrants by giving notice to the holders thereof and in such case the Warrants will expire at 4:00 p.m. (Toronto time) on the twentieth business day after the date on which such notice is given by the Company.

The Agents received a cash commission equal to 7% of the gross proceeds raised, plus a number of broker warrants (the "Broker Warrants") equal to 7% of the number of Units sold under the Offering. Each Broker Warrant is exercisable into one Unit at any time until February 15, 2013 at a price of $0.40 per Unit.

The Company also closed a concurrent non-brokered private placement of $2,000,000 in units having the same terms as the Units, to investors in the United States. A finder's fee consisting of 7% of the gross proceeds raised under the non-brokered private placement plus finder's warrants (the "Finder's Warrants") equal to 7% of the number of Units sold under the non-brokered private placement was paid in certain instances. Each Finder's Warrant is exercisable into one Unit at any time until February 15, 2013 at a price of $0.40 per Unit

Securities issued under both the brokered and non-brokered private placements are subject to a statutory four month plus one day hold period, ending June 16, 2011.

The net proceeds from the Offering and the non-brokered private placement will be used for the advancement of the SMP gold project in Tanzania and the Damara gold project in Namibia and for general corporate working capital purposes.

These securities have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") and were not offered or sold in the United States or to, or for the benefit of, U.S. persons (as defined in Regulation S under the U.S. Securities Act) absent U.S. registration or an applicable exemption from the U.S. registration requirements.

For additional information, please contact Richard Williams at +1 604 638 8005 or by e-mail to richard@helioresource.com or Chris MacKenzie at +44 789 4237424 or by e-mail to chris@helioresource.com.

ON BEHALF OF THE BOARD OF DIRECTORS

"Richard D. Williams"
Richard D. Williams, P.Geo
CEO
"Chris MacKenzie"
Christopher J. MacKenzie, C.Geol.
COO


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.

Certain statements contained in this news release may contain forward-looking information within the meaning of Canadian securities laws. Such forward-looking information is identified by words such as "estimates", "intends", "expects", "believes", "may", "will" and include, without limitation, statements regarding the company's plan of business operations (including plans for progressing assets), estimates regarding mineral resources, projections regarding mineralization and projected expenditures. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include, among others, metal prices, risks inherent in the mining industry, financing risks, labour risks, uncertainty of mineral resource estimates, equipment and supply risks, title disputes, regulatory risks and environmental concerns. Most of these factors are outside the control of the company. Investors are cautioned not to put undue reliance on forward-looking information. Except as otherwise required by applicable securities statutes or regulation, the company expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.
 
 

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