VANCOUVER, May 27 /CNW/ - RT Minerals Corp. ("RTM" / the "Company") (CNSX symbol: RTM) is pleased to announce the closing of the transactions detailed in its news release of May 6, 2010.
In connection with the entering into of the option agreement (the "Option Agreement") with Adventure Gold Inc. ("AGE") covering the Meunier 144 Timmins West gold property (the "AGE property") in Ontario, the Company and Lake Shore Gold Corp. have each subscribed for 1,000,000 units of AGE at a price of $0.20 per unit. The Company has also paid AGE $300,000 and issued AGE 2,500,000 shares of the Company as the initial payments due under the Option Agreement. As detailed in the May 6, 2010 news release, it remains for the Company to incur $1,500,000 of exploration costs on the AGE Property within 18 months in order to earn a 25% interest in the AGE Property.
As consideration for its commitments under the Option Agreement AGE issued 500,000 compensation warrants to the Company, each such warrant entitling the holder to acquire a share of AGE at a price of $0.20 for a term of 12 months.
Concurrent with the completion of the transactions with AGE the Company also closed two private placements, as detailed in the May 6, 2010 news release. The Company raised $350,000 by the issuance of 1,750,000 units at $0.20 per unit and raised a further $800,000 by the issuance of 4,000,000 "flow-through" shares at a price of $0.20 per share.
The Company paid finders fees of 8% cash and 8% compensation warrants on all but $10,000 of the private placement proceeds and also paid a finders fee of 10% on the transaction with AGE, paid as to $57,500 in cash and the issuance of 862,500 common shares of the Company at a deemed price of $0.20 per share.
SOURCE RT MINERALS CORP.
For further information: For further information: Jonathan Samuda, Corporate Secretary, (604) 681-3170