Trading Symbol: TSX-V: RGZ
TORONTO, May 27 /CNW/ - Randsburg International Gold Corporation (TSX-V:
RGZ) announced today that it intends to borrow up to $250,000 on a 3 year term
loan with interest calculated at 10% per annum secured by a collateral
mortgage registered on its "Titan" project located in Flett and Angus
Townships, Ontario, together with up to 2,000,000 non-transferable share
purchase warrants. Each warrant is exercisable for 1 common share of Randsburg
at a price of $0.10 for 2 years from closing. Randsburg may repay the Loan
from the 6th month to the 24th month, subject to a 3 month interest bonus.
During the final year of the Loan, Randsburg may prepay the Loan without any
The agent for the Loan will receive a fee of 10% of the gross proceeds of
the Loan and 100,000, 2 year term brokers' warrants, each for 1 share,
exercisable at $ 0.10. The Trustee for the Loan and the Mortgage is an
affiliate of the Agent.
Randsburg intends to use the proceeds of the Loan to maintain and advance
its mineral properties and the balance for general working capital. It will
reserve sufficient funds from the Loan to pay interest during the first year
of the Loan.
All securities issued in respect of the Loan or warrants will be subject
to a hold period of 4 months and 1 day from the date of closing. The Loan is
subject to regulatory approval.
On behalf of the Board of Directors of
Randsburg International Gold Corp.
President and Chief Executive Officer
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
Copyright, 2009 Randsburg International Gold Corporation. This news
release can be reproduced and retransmitted in whole, with no changes
permitted of any kind, including headlines, or the addition of any headlines
or other material, and providing it is supplied and made available without
charge to the end reader.
For further information:
For further information: Michael Opara, President and Chief Executive
Officer, E-mail: firstname.lastname@example.org, Website: