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Apr 06, 2015 – Calgary, AB.: Morro Bay Resources Ltd. (Morro Bay or the Company) (TSX-V: MRB) announces that it is arranging a non-brokered private placement (the "Offering") of 2,000,000 to 30,000,000 units. Each unit will be comprised of one common share (share) of the Company and one common share purchase warrant ("warrant").

Subject to regulatory approval, the units will be offered at a price of$0.05per unit for gross proceeds of between $100,000 to$1,500,000. Each warrant will be exercisable for one common share of the Company for a period of 24 months from the closing date of their issuance at an exercise price of $0.05 per share for the first 12 months and at an exercise price of $0.10 for the second 12 months. The warrants will not be listed for trading.

The proceeds from the above financing will be used to fund the Companys 2015 exploration program at the Pe[[115]]oles Project upon exercise of the option, including anticipated drilling and exploration work of approximately $750,000, as well as ancillary obligations on its lands and an updated Technical Report thereafter, and approximately $500,000 for general corporate purposes.

The Private Placement may be closed in one or more tranches.

Current shareholders may subscribe to this offering in accordance with recent amendments to prospectus and registration exemptions which allow current shareholders to subscribe to private placements.

The common shares and warrants comprising the units will be subject to a four-month hold period in accordance with policies of the TSX Venture Exchange and applicable Canadian securities legislation as well as such other restrictions as may apply under foreign securities laws, if applicable. The Private Placement remains subject to acceptance by the TSX Venture Exchange.

The Peñoles Project

The Company holds an option to purchase up to 65% interest in the Peñoles Project from Riverside Resources. The Peñoles Project includes two historic silver mines (Jesus Maria and San Rafael), an oxide gold prospect (referred to as El Capitan) and numerous exploration targets located in the historic Peñoles Mining District of Durango, Mexico. Approximately 86 diamond drill holes totaling more than 11,550 metres have now been completed at the Project. The Company recently announced (see the March 2, 2015 press release) a maiden resource estimate for the project: 

Inferred Mineral Resource Estimate 

To view this table, please click on link to original article:

The Jesus Maria and El Capitan mineralized zones have not been completely delineated. The Company is encouraged by the discovery of near surface, potentially economic grade mineralization and believes further drilling is warranted.

The technical information in this news release has been prepared in accordance with Canadian regulatory requirements set out in National Instrument 43-101 (NI43-101) and reviewed and approved by Carl VonEinsiedel, P.Geo., Exploration Manager, Morro Bay Resources Ltd., and a Qualified Person.

CAUTIONARY NOTES:

Mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral resource estimates do not account for mineability, selectivity, mining loss and dilution. These mineral resource estimates include inferred mineral resources that are normally considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is also no certainty that these inferred mineral resources will be converted to measured and indicated categories through further drilling, or into mineral reserves, once economic considerations are applied. The mineral resource estimates referenced in this press release use the term "Inferred Mineral Resources." While this term is defined by Canadian regulations (under NI 43-101), it is not recognized by the U.S. Securities and Exchange Commission ("SEC"). "Inferred Mineral Resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. The SEC normally only permits issuers to report mineralization that does not constitute SEC Industry Guide 7 compliant "reserves" as in-place tonnage and grade without reference to unit measures. U.S. investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves. Morro Bay is not SEC registered company.

About Morro Bay

Morro Bay is a junior mineral exploration company based in Calgary, Alberta, Canada, focused on the exploration for precious metals in Mexico. Morro Bay's business strategy is to build shareholder value by rapidly advancing the Peñoles Project in Mexico through the resource delineation stage.

Further Information

For further information please contact:

Morro Bay Resources Ltd.
John C. Zang President and Chief Executive Officer
E: [email protected]
T: 403 680 9264
 
Investors Relations:
Patrick Piette
E: [email protected]
T: 416 526 9911
 
Or
 
CHF Investor Relations
Robin Cook, Account Manager
E: [email protected]
T: +1 416 868 1079 x228

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Information in this news release may contain forward looking information. Statements containing forward looking information express, as at the date of this news release, the Company's plans, estimates, forecasts, projections, expectations, or beliefs as to future events or results and are believed to be reasonable based on information currently available to the company.

There can be no assurance that forward-looking statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. Readers should not place undue reliance on forward-looking information.

The forward-looking information contained in this news release is as of the date hereof and Morro Bay does not undertake any obligation to update publicly or to revise any of the included forward looking statements contained herein, except as required by applicable law. The forward-looking statements contained herein are expressly qualified by this cautionary statement.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any state in the United States in which such offer, solicitation or sale would be unlawful. The securities referred to herein have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements

Original Article: http://www.fscwire.com/sites/default/files/news_release_pdf/morrobay04062015.pdf

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