FOX ISLAND, Wash., Oct. 18 /PRNewswire-FirstCall/ -- Black Hawk Exploration, Inc. (OTC Bulletin Board: BHWX) (the "Company"), a diversified metals and energy exploration company, announced today that it has entered into an equity purchase agreement with certain institutional investors for the purchase of 2,272,728 shares of the Company's common stock at $0.22 per share for an aggregate purchase price of $500,000 and a loan agreement with the same institutional investors for the purchase of original issue discount secured promissory notes for an aggregate purchase price of $500,000 with the assistance of MidSouth Capital, Inc. The transactions contemplated therein are expected to close on or about October 19, 2010, subject to customary closing conditions.
"This funding commitment further supports development plans and future growth of Black Hawk. We are pleased to have entered into this financing which we anticipate will allow us to advance a strong exploration expansion to benefit our shareholders," said Kevin M. Murphy, Chairman & CEO of Black Hawk Exploration.
In connection with the equity financing, the company will also be required to issue the investors warrants to acquire up to 15,000,000 shares of the company's common stock at $0.22 per share for a period of 30 months as well as warrants to acquire up to 2,272,728 shares of the company's common stock at $0.22 per share for a period of 5 years.
A more detailed description of the agreement is set forth in the Company's current report on Form 8-K filed with the SEC on the date hereof, which the Company encourages be reviewed carefully. The proceeds of the financing will be used for the development of the Company's Dun Glen gold and Blue Lithium projects and to make acquisitions of exploration opportunities and/or companies in the same mineral and energy sectors.
About Black Hawk Exploration, Inc.:
Black Hawk is a diversified metals and energy exploration company with its current focus on gold and lithium exploration through its wholly owned subsidiaries Golden Black Hawk and Blue Lithium. Gold exploration and discovery is currently underway at the Company's Nevada Dun Glen holdings. Black Hawk is committed to an aggressive program of value added property acquisition, project generation, asset diversity and building shareholder value.
About MidSouth Capital
MidSouth Capital, Inc. is a middle market investment banking boutique dedicated to servicing the investment banking needs of the less than $200 million enterprise. MidSouth Capital acted as the placement agent on the transaction.
"Safe Harbor" Statement:
Under The Private Securities Litigation Reform Act of 1995: The statements in the press release that relate to the Company's expectations with regard to closing of the financing agreements are forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. Notice Regarding Forward Looking Statements - This press release includes forward-looking statements that involve a number of risks and uncertainties, including the success of the programs it is commercializing and developing. Further, the risks involve the ability of the Company to raise capital to fund its operations and the capital requirements for the development and marketing of its products. Investors are encouraged to review the risk factors listed or described from time to time in the Company's filings (10K, 10Q's, S-1 and others) with the Securities and Exchange Commission.
SOURCE Black Hawk Exploration, Inc.