VANCOUVER, Jan. 8, 2016 /CNW/ - Rathdowney Resources Ltd. ("Rathdowney" or the "Company") (TSXV: RTH) announces that it has entered into Loan Agreements with respect to a $310,000 loan (the "Loan") with non-arm's length directors and officers of the Company (the "Lenders").
The Loan is unsecured, will bear interest at a rate of 15% per annum and is repayable after six months or earlier on the occurrence of a default. In connection with the Loan, Rathdowney will issue to the Lenders a loan bonus in the form of 1,823,527 warrants (the "Bonus Warrants"), each entitling the holder to acquire one common share of Rathdowney for one year at a price of $0.17 per share. The Bonus Warrants will be subject to a four month hold period, commencing on the date of issuance. The Loan and Bonus Warrants are subject to acceptance by the TSX Venture Exchange.
The Loan will be used by the Company for working capital.
About Rathdowney and Project Olza
Rathdowney Resources Ltd. is focused on advancing its Olza zinc-lead-silver project ("Project Olza") through permitting and into production. 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 25 km from the ZGH zinc smelter at Boleslaw. Additionally, a railway line runs through the project-area, linking it to smelters throughout Europe and to ports on the Baltic Sea.
Technical information in this release has been reviewed by David Copeland, PEng, a qualified person who is also Chairman and a Director of Rathdowney.
On behalf of the Board of Directors
President & CEO
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: Project Olza will obtain all required environmental and other permits and all land use and other licenses, studies and development of Project Olza 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, exploitation and exploration successes, continuity of mineralization, potential environmental issues and liabilities associated with exploration, development and mining activities, 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: visit the Company website www.rathdowneyresources.com or contact Investor Relations at 604-684-6365 or Toll free (NA): 1-800-667-2114.