Transaction Announcement

A transaction securing the growth of Armadillo Resources Ltd.

May 15, 2013, Vancouver, BC – (CNSX:ARO) Big Ben Venture Partner AB, a private advisory firm announced today that Armadillo Resources Ltd. has signed a Special Private Placement Agreement for CDN $10,000,000, subject to regulatory approval, with a US investor. The funds will be used for expansion and to advance the exploration and development of our mining properties as well as for property acquisitions and general corporate use.

The initial plan is to commence work on Armadillo's newly acquired Flagstaff Gold Mine in Oregon State, USA. The Company intends to complete an initial program of sampling, trenching, and drilling including an upgrade to the existing tunnels to gain access and verify the existing ore body, as noted in the reports located on its website. After verification, Armadillo will pay US $50,000.00 and issue the old owners Dimari Enterprises LLC of Pasco, Washington 500,000 common shares of the Company. A further payment of US $50,000 per anniversary date or a 25% royalty from production, whichever is the greatest to a maximum total payable of US $5,000,000, will also be required.

There will be a total commitment fee of 4,000,000 common shares payable to the investor for this Private Placement Agreement.

The investor has no outside investors and is considered a private group run by its principals, similar to a merchant bank that invests its own capital and as such is seeking capital appreciation through identification and funding and growth with potential companies.

Big Ben Venture is a qualified partner with more than 20 years experience in raising capital, with offices in Toronto, Stockholm, Winnipeg, and Detroit.

The information contained herein is for informational and discussion purposes only and is not intended to be, nor shall it be, construed as legal, tax or investment advice or as an offer, or the solicitation of any offer, to buy or sell any securities. Before entering into any investment you should thoroughly review the respective transaction documents with your legal, tax and investment advisors.


Equity Line Facility
Common stock
May 15, 2013

Transaction Overview
  • Armadillo may, at its sole and exclusive option, periodically sell to the investor shares of its common stock, SEK 0.01 par value per share (the "Common Stock") for a total purchase price of up to ten million dollars ($10,000,000)
  • For each share of Common Stock purchased the investor will pay to the Company eighty-five (85%) of the lowest daily volume weighted average price of the Common Stock during the 15 consecutive trading days following delivery by the Company of an advance notice. Such advance will not exceed more than 250% of the average daily trading volume.
  • Proceeds to be used to purchase mining equipment and for additional flexibility to fund the growth strategy