TORONTO, Jan. 14, 2014 /CNW/ - Richmond Minerals Inc. (TSXV: RMD) ("Richmond" or the "Company") is pleased to announce that it has received funding for $185,000 that includes a $105,000 non-brokered common share private placement (the "Offering") and an $80,000 loan.
Under the terms of the Offering, Richmond will issue 2,100,000 units priced at $0.05 per unit. Each unit consists of one common share issued on a "flow through" basis, plus one whole share purchase warrant entitling the holder thereof to purchase an additional "non-flow through" common share of Richmond at a price of $0.10 for a period of 18 months. The flow through common shares will be subject to a four month hold period following the closing of the Offering. Proceeds will be used to fund exploration work on the Company's Swayze area gold properties during 2014, and Richmond will renounce the qualifying expenditures to subscribers of the Offering for the fiscal year ended December 31, 2013.
The $80,000 loan was provided by an Insider of the Company and will be used for general working capital purposes. It bears an annual interest rate of 12% and has 24 month duration. Richmond can re-pay the loan at any time without penalty.
In connection with the Offering, Richmond will pay a finder's fee of $3,500 and issue 70,000 finder's warrants. The Offering is subject to TSX-Venture Exchange acceptance.
Cautionary Note Regarding Forward-Looking Statements: Certain disclosure in this release constitute forward-looking statements. In making the forward-looking statements in this release, the Company has applied certain factors and assumptions that are based on the Company's current beliefs as well as assumptions made by and information currently available to the Company. Although the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect, and the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Such risk factors include, among others, that the litigation will be resolved. Readers are cautioned not to place undue reliance on forward-looking statements. The Company does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.
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 news release.
On Behalf of Richmond Minerals,
President and CEO
SOURCE: Richmond Minerals Inc.
For further information:
Franz Kozich, President or Warren Hawkins, Exploration Manager at (416) 603-2114.