VANCOUVER, Dec. 31 /CNW/ - RT Minerals Corp. ("RTM" / the "Company")
(CNSX: RTM). Further to its news releases of November 24, 2010 and
December 10, 2010, the Company is pleased to announce the completion of
its acquisition of the Bazooka and McWatters gold properties in Quebec
from Lake Shore Gold Corp. (TSX: LSG) ("LSG") and the closing of three
separate non-brokered unit private placements (the "Private
Placements") for total gross proceeds to the Company of approximately
Pursuant to the transaction with LSG, the Company's largest shareholder,
which transaction was approved by the shareholders of the Company at a
meeting held on December 30, 2010, the Company has issued LSG
10,000,000 shares, and transferred its interest in the Golden Property
near Timmins, Ontario and up to 50% of RTM's earned interest in the
Meunier JV property to LSG in consideration for the transfer to the
Company by LSG of a 100% interest in the advanced stage Bazooka gold
property in Quebec and the McWatters gold property in Quebec, as well
as LSG agreeing to reimburse the Company for $500,000 in exploration
expenditures in 2011 following the Company incurring a further
$1,000,000 in exploration on the Meunier JV property adjacent to LSG's
Timmins Mine property, Ontario.
On closing of the Private Placements the Company issued a total of
4,607,000 units at $0.16 per unit (the "$0.16 Units"), a further
9,390,000 flow-through units at $0.20 per unit (the "$0.20 Units") and
4,968,750 structured flow-through units at $0.28 per unit (the "$0.28
Units"). Each $0.16 Unit was comprised of one common share and one
half of a warrant, with each whole warrant (a "Warrant") entitling the
holder to acquire a further common share of the Company at a price of
$0.20 for a term of two years, expiring December 30, 2012. The $0.20
Units and the $0.28 Units were each comprised of one flow-through share
and one half of a Warrant. Insiders subscribed for 200,000 of the $0.20
Units and for 1,500,000 of the $0.16 Units.
The Company paid finders' fees totalling $187,762 and issued 854,445
finders' warrants in connection with the Private Placements. Each
finders' warrant entitles the holder to acquire one common share of the
Company at a price of $0.20 for a term of two years expiring December
Upon closing of the above transactions LSG now controls 27.4% of RTM's
common shares and LSG may control approximately 30% of RTM on a fully
All of the securities issued in connection with the Private Placements
are subject to a 4 month hold period expiring May 1, 2011.
Proceeds from the Private Placements are to be used to fund the
Company's exploration activities over the next 12 months and for
general working capital.
As a result of the above closings RTM intends to proceed to apply for
listing on the TSX Venture Exchange with the Bazooka property as the
Company's qualifying property. There is no assurance that such
application or listing will be accepted or obtained.
The forgoing information may contain forward-looking statements and
events relating to the future performance of the Company. Forward
looking statements, specifically those concerning future performance,
are subject to certain risks and uncertainties, and actual results may
differ materially. These risks and uncertainties are detailed from time
to time in the Company's filings with the appropriate regulatory
authorities. We seek safe harbour.
SOURCE RT MINERALS CORP.
For further information: For further information:
Donald M. Clark
President and CEO
Tel: (604) 681-3170
Fax: (604) 681-3552