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Pinetree Capital increases stake in Halo Resources

Merchant bank Pinetree Capital (TSX: PNP) said that it has acquired additional shares in Halo Resources, which could represent up to 9.9% in the company, increasing its stake in Halo to potentially 17.6%.

Under the terms of the deal, Halo has sold 1 million common shares and 1 million common share purchase warrants to Pinetree. Each warrant entitles the holder to acquire one additional common share at a price of $0.35 until October 4, 2012.

From this transaction, if the warrants are fully exercised, Pinetree will have approximately 9.9% of the total issued and outstanding shares of Halo as of October 5, 2010, on a partially diluted basis. In total, however, if warrants are used, Pinetree will have an approximate 17.6% stake, which currently represents around 3.65 million shares.

Halo is a Canadian-based resource company focused on the acquisition of near production base and precious base metal deposits. The company's focus is the 200 sq. km. Sherridon VMS Property, a combination of mature and grassroots volcanogenic massive sulphide (VMS) copper, zinc and gold exploration opportunities.

The company teamed up with HudBay Minerals (TSX:HBM) last year to joint venture a 1.1 square kilometer area on the property, host to its Cold Lake and Lost Lake deposits, and located within trucking distance of HudBay's concentrator at Flin Flon - the idea being to eventually provide feed.

Halo Resources is no one trick pony, with a number of additional projects in its portfolio, a joint venture with Goldcorp (TSX:G, NYSE:GG) at the Red Lake Gold Property, and a 1% NSR on Metanor Resources (CVE:MTO) Bachelor Lake Property in Quebec, which is expected to generate in the region of $0.4 million to $0.6 million of income annually when underground mining commences in 2011.

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