OTTAWA, ONTARIO--(Marketwire - Oct. 4, 2012) -
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Beaufield Resources Inc. ("Beaufield" or the "Company") (TSX VENTURE:BFD) is pleased to announce that it has completed a non-brokered private placement (the "Offering") with Hongkong Huaxin Petroleum Limited ("HKHP") of 10,000,000 common shares (the "Shares") at a price of $0.20 per Share for gross proceeds of $2,000,000. No commission was paid in connection with the Offering. The Shares are subject to a four-month hold period until January 29, 2013 pursuant to applicable securities legislation. The Offering is subject to the final approval of the TSX Venture Exchange.
Including this financing, the Company has 111,281,519 common shares outstanding and HKHP holds 9% of Beaufield's issued and outstanding common shares. Beaufield now has approximately $8 million in working capital representing approximately $0.07 per common share of Beaufield.
HKHP is a wholly-owned subsidiary of CEFC Shanghai Oil Group Co., Ltd., which is a subsidiary of China CEFC Energy Company Limited ("CEFC") (www.cefc.co) and whose core businesses include bulk trading of oil, petrochemical products and oil storage. CEFC specializes in the oil, petrochemical and energy industries. Chairman Ye Jianming of CEFC came to Ottawa in August 2012 specifically to meet with Beaufield's management and to discuss an initial investment. HKHP recognizes the importance of Canada's mineral sector and wishes to establish an initial modest introductory investment in this sector. Beaufield's extensive exploration experience and excellent diversified property portfolio is attractive to HKHP.
Jens Hansen, President and CEO of Beaufield stated "The investment by HKHP is welcome and a very significant vote of confidence in Beaufield and its assets. It introduces a very important international investor to Beaufield and provides the opportunity for a long term relationship. Beaufield intends to work closely with HKHP in advancing Beaufield's exploration and investment objectives and brings an added global perspective to the Company".
Chairman Ye Jianming of CEFC stated "We are very pleased to have made our investment into Beaufield, our first investment into a Canadian resource company. We are excited about Beaufield's prospects for future success and we are looking forward to a productive and mutually prosperous relationship with Beaufield and its team going forward".
Beaufield's iron holdings are centrally located within the Schefferville Iron district, having common boundaries with Tata Steel, New Millennium Iron Corp, Century Iron Mines and Labrador Iron Mines. Tata and Labrador are developing DSO (Direct Shipping Ore) deposits within 3 kilometres of their boundary with Beaufield. Beaufield also holds a 100% interest in the Troilus-Tortigny base metal deposit and the strategically located Opinaca gold property.
The Shares have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "1933 Act"), or under any state securities laws, and may not be offered or sold, directly or indirectly, or delivered within the United States or to, or for the account or benefit of, U.S. persons (as defined in Regulation S under the 1933 Act) absent registration or an applicable exemption from the registration requirements. This news release does not constitute an offer to sell or a solicitation to buy such securities in the United States.
About Beaufield Resources Inc.
Beaufield has diversified properties with exposure to gold, iron ore and base metals, all located in the provinces of Quebec and Ontario.
About Hongkong Huaxin Petroleum Limited
Hongkong Huaxin Petroleum Limited is a subsidiary of China CEFC Energy Company Limited (www.cefc.co).
The information set forth in this press release includes certain forward-looking statements. Such statements are based on assumptions exposed to major risks and uncertainties. Although Beaufield deems the expectations reflected in these forward-looking statements to be reasonable, the Company cannot provide any guarantee as to the materialization of the expectations reflected in these forward-looking statements. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) has reviewed or accepts responsibility for the adequacy or accuracy of this Release.