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Message: NR PP for $26m

NR PP for $26m

posted on Apr 19, 2010 11:32AM

BlackPearl Resources Inc. ("BlackPearl" or the "Company") (TSX:PXX) (FIRST NORTH:PXXS) is pleased to announce that it has entered into an agreement with a syndicate of underwriters co-led by FirstEnergy Capital Corp. and GMP Securities L.P., and including RBC Capital Markets, Canaccord Financial Ltd., Macquarie Capital Markets Canada Ltd., Peters & Co. Limited and TD Securities Inc. (the "Underwriters") pursuant to which the Underwriters have agreed to purchase for resale to the public, on a bought deal basis, 9,000,000 common shares (the "Common Shares") at $2.90 per Common Share for aggregate gross proceeds of $26.1 million.

In addition, the Underwriters have been granted an over-allotment option, which may be exercised in whole or in part up to 30 days after closing of the offering (the "Closing"), to purchase up to 1,350,000 additional Common Shares at a price of $2.90 per Common Share. If the over-allotment is fully exercised, gross proceeds from the offering will be approximately $30 million.

The Corporation intends to use the net proceeds to replenish working capital as a result of the recent acquisition of an additional working interest at its Blackrod SAGD project, accelerate development activities at Onion Lake and other areas, and for general corporate purposes.

The offering is scheduled to close on or about May 11, 2010 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the Toronto Stock Exchange and the securities regulatory authorities.

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