Richmond Minerals Inc. Announces Private Placement and Grant of Options
TORONTO, May 19, 2020 - Richmond Minerals Inc. (TSX-V: RMD) (the "Company") proposes to complete a non-brokered private placement pursuant to which it shall issue up to 16,000,000 units (each a "Unit) of the Company at a price of C$0.05 per Unit to raise aggregate proceeds of up to C$800,000 (the "Offering"). Each unit will consist of one common share and one common share purchase warrant (each, a "Warrant") . Each Warrant shall entitle the holder thereof to acquire one Common Share at a price of $0.10 until 5 pm (Toronto time) on the date which is 18 months following the closing of the Offering, whereupon the Warrants expire. The securities issued and issuable pursuant to the Offering will be subject to a four month and one day hold period. The Company intends to use the net proceeds from the Offering to fund exploration and development at Company's Ontario and European properties and for working capital purposes related to the Transaction. The Offering is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange and applicable securities regulatory authorities.
The securities offered have not been registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act"), or applicable state securities laws, and may not be offered or sold to persons in the United States absent registration or an exemption from such registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
The Company also announces that it has made a grant of stock options under its stock option plan to its directors and officers to acquire a total of 5.2 million common shares of the Company. In addition, the Company has granted options to acquire an aggregate of 3.9 million common shares of the Company to certain non-executive employees and consultants. All of the options are exercisable at a price of $0.10 per share for a period of five years from the date of grant. All Director and Officer options will vest on the date of grant, and 50% of consultant/employee options will vest on the date of grant, with the remaining 50% vesting in 6 months.
Additionally, on April 29, 2020 Rockridge Resources Ltd. (TSX-V: ROCK) announced drill results from its Raney Gold Property which included an intersection of 28.0 grams per tonne over a 6 meter interval from a hole collared approximately 550 meters west of, and on trend with Richmond's western Ridley Lake Property boundary. Rockridge indicates that this broad alteration zone (structural corridor) that hosts the mineralization is open for expansion; historic mapping and surface sampling data show that the alteration zone may extend over several hundred metres, with no drilling completed over a large extent of this corridor.
Warren Hawkins, P.Eng, a "Qualified Person", within the meaning of Nation Instrument 43-101- Standards of Disclosure for Minerals Projects, has reviewed and approved the scientific and technical information contained in this news release. Mr. Hawkins is not considered to be "independent" of the Corporation (as defined in National Instrument 43-101), as he currently holds securities of the Corporation.
CAUTIONARY STATEMENT: 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, including successful completion of the Transaction. There is no guarantee that the Transaction will be completed on the terms announced in this press release or at all. 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; the ability of Richmond to raise funds pursuant to future offerings, including the second tranche of the Offering; 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.
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.
/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES./
SOURCE Richmond Minerals Inc.
Contact
Franz Kozich, President, Warren Hawkins, P. Eng., Exploration Manager, E: warren@richmondminerals.com, Tel: 416-603-2114