TSX - "HBK"
12g3-2(b): 82-1508
October 19, 2006
Highbank Resources Ltd. (“HBK”) has closed and completed the first tranche of the previously announced financing (see TSX Bulletin dated October 6, 2006). Gross proceeds of the financing was $257,000. A total of 1,285,000 units of the Company were issued at a price of 20 cents per unit. Each unit comprises one common share of the Company and one non-transferable two year warrant, with each warrant entitling the holder thereof to purchase one further common share at an exercise price of 30 cents if exercised on or before October 6,2007 or at 40 cents if exercised after October 6,2007 but on or before October 6,2008. All of the securities issued to the placees in this first tranche are subject to a four-month hold period expiring February 7, 2007.
The Company continues to receive further subscriptions and is expecting to close an additional 715,000 units ($143,000 gross proceeds) as was previously announced August 17, 2006.
Swamp Point North – project update
Core logging of the 400 metre drill program is continuing at our off site storage facility in Terrace for further testing and composition evaluation. Further sampling may be conducted with samples to be shipped to Levelton Consultants Ltd. for A.S.T.M. (American Society for Testing and Material) and C.S.A. (Canadian Standards Association) evaluation to show the Company that this material meets the requirements for C1 & C2 concrete for the construction industry—as was received in the 2005, four ton bulk sampling program. The Company is also awaiting results of the further seismic refraction and property survey completed in October.
ON BEHALF OF THE BOARD
Gary Musil, CFO/Secretary/Director
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