TORONTO, April 2, 2014 /CNW/ - Further to its press release dated March 13, 2014, Richmond Minerals Inc. (TSX-V: RMD) ("Richmond") is pleased to announce the completion of its previously announced non-brokered private placement financing for aggregate gross proceeds of $415,000 (the "Offering"). The Offering consisted of the sale of 100,000 flow-through units ("FT Units") at $0.10 per FT Unit and the sale of 5,788,571 hard dollar units ("HD Units") at $0.07 per HD Unit.
Each FT Unit consisted of one common share in the capital stock of Richmond ("Common Share") issued on a flow-through basis and one Common Share purchase warrant ("FT Warrant"). Each FT Warrant will entitle the holder purchase one Common Share a price of $0.15 per Common Share until April 2, 2015, and for a price of $0.30 from April 3, 2015 until April 2, 2016, whereupon the FT Warrants expire. Each HD Unit consisted of one Common Share and one Common Share purchase warrant ("HD Warrant"). Each HD Warrant will entitle the holder to acquire one Common Share for $0.10 for a period of five (5) years from the date of issuance.
In connection with the Offering, a 7% and 10% finder's fee was paid in cash to two eligible finders and a total of 104,250 finders' warrants ("Finders' Warrants") were issued equal to 7% and 10%, as applicable, of the number of FT Units and HD Units placed by such finders pursuant to the Offering. Each Finders' Warrant entitles the holder thereof to acquire one HD Unit for $0.07 until April 2, 2016.
All securities issued pursuant to the Offering are subject to a statutory hold period expiring on August 3, 2014.
Franz Kozich, President and Chief Executive of Richmond, and therefore a "related party" to Richmond, as that term is defined in Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"), subscribed for an aggregate of 150,000 HD Units pursuant to the Offering, constituting a related party transaction pursuant MI 61-101. Richmond relied on Section 5.5(a) of MI 61-101 for an exemption from the formal valuation requirement and Section 5.7(1)(a) of MI 61-101 for an exemption from the minority shareholder approval requirement of MI 61-101 as the fair market value of the transaction did not exceed 25% of the Company's market capitalization.
Richmond intends to use the net proceeds from the Offering to fund continued exploration on Richmond's Swayze area properties and for general working capital purposes.
The Swayze Properties are located approximately 45 kilometers east of Chapleau, Ontario and consist of 154 mining claims and 43 claim units. These claims are located along the western extension of the Ridout shear zone which hosts the Cote Lake and St Jerome projects of IAMGOLD, and approximately 35 kilometers due east of the Probe Mine's Borden Lake discovery. Exploration work conducted in the mid 1980's on the central Swayze Property identified multiple gold bearing quartz veins on surface. Follow-up diamond drilling (13 holes) in 1989 intersected numerous broad zones of gold mineralization.
No exploration work has been carried out on the central Swayze claim block since Certificates of Pending Proceedings were attached to these claims in 1991. On February 3, 2014 Richmond announced that the Ontario Superior Court had ruled that these Certificates of Pending Proceedings be vacated. The Plaintiff has appealed the ruling however Richmond management is of the opinion that the grounds for the appeal are without merit. Richmond plans on moving forward with its exploration plans.
CAUTIONARY STATEMENT: Neither the TSX-V nor its Regulation Services Provider (as that term is defined in the policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this release. This news release contains forward-looking information which is not comprised of historical facts. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to, Richmond's objectives, goals or future plans. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, changes in general economic conditions and conditions in the financial markets; changes in demand and prices for minerals; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments, and those risks set out in Richmond's public documents filed on SEDAR. Although Richmond believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Richmond disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.
SOURCE: Richmond Minerals Inc.
For further information: Franz Kozich, President & Chief Executive Officer; Warren Hawkins, P.Eng, Exploration Manager, E: email@example.com, Tel: 416.603.2114, Fax: 416.603.8436