Butler Resource Corp. Announces completion of Reactivation, upgrade to Tier 2 of TSX Venture Exchange and Closing of Non-Brokered Private Placement
Vancouver, British Columbia, February 24, 2010 – Butler Resource Corp. (the “Company”)(TSX.V – BTD) announces that it has received final acceptance from the TSX Venture Exchange (the “Exchange”) to its reactivation as a mineral exploration company which involves the acquisition of a 100% interest in the Archie Lake Property. Accordingly, effective at the open of trading on February 25, 2010, the Company’s listing will change from NEX to Tier 2 of the Exchange under the symbol “BTD”.
The Company has closed its previously announced non-brokered private placement (the “Private Placement”) of 5,640,000 units (each a “Unit”) at a price of CAD$0.25 per Unit for gross proceeds of CAD$1,410,000. Each Unit consists one common share and one-half of one transferable share purchase warrant, each whole warrant exercisable into an additional common share of the Company for a period of 18 months from the closing at an exercise price of CAD$0.35 per common share.
In connection with the Private Placement, the Company paid Canaccord Capital Corporation a cash finder’s fee of CAD$17,200 and MineGate Resources Capital Group Inc. a cash finder’s fee of CAD$32,200.
All securities issued in respect of the Private Placement are subject to resale restrictions expiring on June 25, 2010.
The proceeds of the Private Placement will be used for advancement of the Company’s Archie Lake property, general working capital, and future acquisitions.
The Company also announces that the Exchange has accepted for filing documentation in connection with an acquisition (the “Agreement”) dated September 12, 2009 among the Company, Zimtu Capital Corp . (“Zimtu”) and 877384 Alberta Ltd. (“877384”) under which the Company agreed to purchase 100% of the Archie Lake Property. Under the terms of the Agreement, the consideration payable to Zimtu and 877384 (the “Vendors”) is:
(a) payment of $20,000 to the Vendors on signing of the Agreement;
(b) payment of $20,000 on issuance of the final Exchange bulletin; and
(c) issuance of 2,000,000 common shares on the issuance of the final Exchange bulletin.
A 2% net smelter royalty is payable to the Vendors on commencement of commercial production on the Archie Lake Property. The Company may repurchase ½ of the net smelter royalty for $1,000,000.
Peter Dickie, President of the Company stated “We are very pleased to have completed the reactivation of Butler and once again become listed on Tier 2 of the TSX Venture Exchange as a mining exploration company. We intend to follow up on the work recommendations for Archie Lake as soon as possible, and actively pursue other opportunities in the Rare Earth segment”.
On Behalf of the Board,
Peter Dickie, President, CEO
For further information, contact Peter Dickie, President and CEO of the Company at 604-669-9330.
Neither 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.