TORONTO, Dec. 12 /CNW/ - Richmond Minerals Inc. (RMD-TSXV) ("Richmond" or
the "Corporation") is pleased to announce a non-brokered private placement of
flow-through shares. Proceeds of $1,227,012 (before expenses) were raised.
A total of 11,154,662 flow-through shares were issued by the Corporation
at a price of $0.11 per share. The Corporation intends to use the proceeds
raised primarily to drill exploration targets on it's Halle and Bondy Gneiss
Complex in the Province of Quebec and it's Triple Lakes property in the
province of Ontario.
Through an affiliate, MineralFields Group invested approximately $800,000
in the Corporation through the private placement, all of which were
flow-through shares. In connection with the investment by MineralFields Group
through the private placement, in addition to legal, accounting,
administrative and other fees, the Corporation paid a finder's fee to Limited
Market Dealer Inc. consisting of a payment of 6% of the amount invested (paid
for in common shares of the Corporation), a due diligence fee of 4% (paid in
shares of the Corporation) and broker warrants exercisable for up to 10% of
the funds placed.
"We are very pleased to be renewing our relationship with MineralFields
Group", said president, Paul Ankcorn. "This is an important milestone in the
growth of Richmond Minerals, and we look forward to working with MineralFields
Group as we develop our projects in the Halle and Bondy Lake in Quebec. This
is our second financing in a row with MineralFields, the last one having been
done in 2006".
This placement is subject to final approval from the TSX Venture
Exchange, but has received conditional approval from the TSX Venture Exchange.
MineralFields Group (a division of Pathway Asset Management) is a
Toronto-based mining fund with significant assets under administration that
offers its tax-advantaged super flow-through limited partnerships to investors
throughout Canada during most of the calendar year, as well as hard-dollar
resource limited partnerships to investors throughout the world. Pathway Asset
Management also specializes in the manufacturing and distribution of
structured products and mutual funds. Information about MineralFields Group is
available at www.mineralfields.com. First Canadian Securities(R) is active in
leading resource financings (both flow-through and hard dollar) on
competitive, effective and service-friendly terms, with investors both within,
and outside of, MineralFields Group.
On Behalf of the Board of Directors
Paul Ankcorn, President
Neither the TSX Venture Exchange Inc. nor any other regulatory body
accept responsibility for the adequacy or accuracy of this news release.
For further information:
For further information: regarding Richmond Minerals Inc., please
contact the Corporation at: 133 Richmond Street West, Suite 403, Toronto, ON,
M5H 2L3, Tel: (416) 603-2114, Fax: (416) 603-8436