Rathdowney closes first tranche of non-brokered financing, raising $6.9 million
VANCOUVER, Aug. 12, 2014 /CNW/ - Rathdowney Resources Ltd. ("Rathdowney" or the "Company") (TSXV: RTH) announces it has completed the first tranche of a private placement of approximately 27,840,000 common shares at a price of $0.25 per share for gross proceeds of $6,960,000. The shares are subject to applicable resale restrictions, including a 4 month hold under Canadian legislation. Fees of up to 6% are payable on a portion of the financing.
One of the placees, Geologic Resource Partners LLC ("Geologic") has subscribed for 22,800,000 shares and upon completion of the financing will hold 19.6% of the shares of the Company. Geologic also has the right to nominate two individuals for appointment to the Company's Board of Directors. Concurrent with the closing, George Ireland, Chief Investment Officer and Managing Member of Geologic, who has over 30 years of experience in all aspects of the resource sector and Myron Manternach, who is a consultant to the investment committee of Geologic and has 20 years of experience in managing investments, with significant experience in the natural resources and technology sectors, have agreed to join Rathdowney's Board. Robert Schafer and Stephen Hodgson have resigned from the Board.
Proceeds from the financing will be used to advance Phase II activities at Rathdowney's flagship Olza Zinc-Lead-Silver Project in Poland and for working capital purposes.
President and CEO Robert Konski said, "On behalf of the Rathdowney Board of Directors, I would like to welcome the representatives of our major shareholder to the Board. We look forward to their knowledge and advice as the project advances.
I would also like to thank Bob Schafer and Steve Hodgson for their insights and guidance to the Company over the past three years."
Rathdowney Resources Ltd. is an exploration and development company focused on advancing the Olza zinc-lead-silver project in Poland through permitting and into production. Rathdowney is associated with Hunter Dickinson Inc. ("HDI") a diversified, global mine development company with a 25-year history of mineral development success.
About Project Olza
Project Olza is located in the Upper Silesian Mining District of southwestern Poland, a world-class region of Mississippi Valley-type deposits with well-developed mining infrastructure. Easily accessible by road, the Olza project site is a one-hour drive from Krakow, a major city with full services, including an international airport. The deposits at Olza are along strike from the long-life Pomorzany zinc-lead mine and 30 km from the ZGH zinc smelter at Boleslaw. A railway line to the smelter runs through the Olza project-area.
Since 2010, Rathdowney has invested over $16 million at Olza. The Company's Phase I confirmatory drilling program built on the extensive drill database assembled by the Polish Geological Survey to delimit 21.2 million tonnes of inferred mineral resources, grading 7.42% combined zinc and lead1, with excellent potential for expansion. These mineral resources provide the foundation for engineering, environmental baseline and other Phase II technical studies designed to advance project planning and permitting.
David Copeland, PEng, a qualified person and a director of the Company, has reviewed the technical information in this release.
For further details on Rathdowney and Project Olza, please visit the Company's website: www.rathdowneyresources.com.
On behalf of the Board of Directors
President & CEO
|1 Estimated at a 2.0% zinc cutoff; individual grades are 5.88% zinc and 1.54% lead (see Rathdowney News Release dated September 11, 2012). Silver was not analyzed during historical drilling so was not included in the estimate.|
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address exploration drilling, exploitation activities and events or developments that the Company expects, are forward looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Assumptions used by the Company to develop forward-looking statements include the following: the Olza project will obtain all required environmental and other permits and all land use and other licenses, studies and development of the Olza project will continue to be positive, and no geological or technical problems will occur. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, potential environmental issues or liabilities associated with exploration, development and mining activities, exploitation and exploration successes, continuity of mineralization, uncertainties related to the ability to obtain necessary permits, licenses and title and delays due to third party opposition, changes in government policies regarding mining and natural resource exploration and exploitation, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. For more information on the Company, investors should review the Company's continuous disclosure filings that are available at www.sedar.com.
SOURCE Rathdowney Resources Ltd.For further information:
Roger Blair, Investor Relations
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