Limited (TSXV: REL) ("Roughrider" or the "Company") – is pleased to announce that it has signed Option Agreements with Eagle Plains Resources Ltd. ("Eagle Plains") to acquire up to an 80% interest in the Brownell Lake (base metals)
VANCOUVER, BC / ACCESSWIRE / June 7, 2018 / Roughrider Exploration
Limited (TSXV: REL) ("Roughrider" or the "Company") – is pleased to
announce that it has signed Option Agreements with Eagle Plains Resources Ltd.
("Eagle Plains") to acquire up to an 80% interest in the Brownell Lake (base metals)
and Olsen (gold) exploration properties located near La Ronge Saskatchewan. No
shares will be issued in connection with the option agreements. The terms of the
option agreements are as follows.
Brownell Lake Option Agreement
Under the terms of the Brownell Lake Option Agreement, Eagle Plains will grant the
Company the right to acquire up to an 80% interest in and to Brownell Lake (subject
to the 2% NSR ) by making aggregate cash payments of up to $2,500,000 and
incurring exploration expenditures of up to $7,000,000 over a period of up to four
years as follows:
i. To earn an initial 60% interest:
Aggregate cash payments of $500,000 according to the following schedule:
$25,000 on or before March 31, 2019
$50,000 ($75,000 total) on or before March 31, 2020
$125,000 ($200,000 total) on or before March 31, 2021
$300,000 ($500,000 total) on or before March 31, 2022
b. Aggregate exploration expenditures of $3,000,000 according to the following
schedule
$100,000 on or before December 31, 2018
$300,000 ($400,000 total) on or before December 31, 2019
$600,000 ($1,000,000 total) on or before December 31, 2020
-$2,000,000 ($3,000,000 total) on or before December 31, 2021
ii. To earn an additional 20% interest (total 80%):
a. Additional $2,000,000 cash payment $2,500,000 total) and $4,000,000
exploration expenditures ($7,000,000 total) within 2 years of the date of
election to exercise the initial option
Olsen Option Agreement
Under the terms of the Olsen Agreement, Eagle Plains will grant the Company the
right to acquire up to an 80% interest in and to the Olsen Property (subject to the 2%
NSR ) by making aggregate cash payments of up to $2,500,000 and incurring
exploration expenditures of up to $7,000,000 over a period of up to four years as
follows:
iii. To earn an initial 60% interest:
Aggregate cash payments of $500,000 according to the following schedule:
$25,000 on or before March 31, 2019
$50,000 ($75,000 total) on or before March 31, 2020
$125,000 ($200,000 total) on or before March 31, 2021
$300,000 ($500,000 total) on or before March 31, 2022
Aggregate exploration expenditures of $3,000,000 according to the following
schedule:
$100,000 on or before December 31, 2018
$300,000 ($400,000 total) on or before December 31, 2019
$600,000 ($1,000,000 total) on or before December 31, 2020
-$2,000,000 ($3,000,000 total) on or before December 31, 2021
iv. To earn an additional 20% interest (total 80%):
a. Additional $2,000,000 cash payment $2,500,000 total) and $4,000,000
exploration expenditures ($7,000,000 total) within 2 years of the date of
election to exercise the initial option
The Company is pleased to be adding to its exploration portfolio in Saskatchewan.
Proposed 5:1 Consolidation
The Company also reports it proposes to consolidate the Company's common shares
on the basis of one (1) post-consolidation common share for every five (5) pre-
consolidation common shares. In accordance with current TSXV policies, shareholder
approval will not be required for the proposed consolidation. The proposed
consolidation has been approved by the Company's board of directors.
Management believes the share consolidation will provide the Company with greater
flexibility in its ability to finance the Company and advance its projects. The
Company currently has no plans to change its name in connection with the proposed
share consolidation. The share consolidation will be subject to acceptance for filing by
the TSX Venture Exchange.
The Company currently has an aggregate of 47,082,757 common shares issued and
outstanding. It is anticipated that upon completion of the share consolidation, there
will be approximately 9,416,551 common shares issued and outstanding, subject to
any existing stock options being exercised prior to the effective date of the
consolidation.
The Company currently has outstanding stock options exercisable to purchase an
aggregate of 2,400,000 common shares at exercise prices ranging from $0.07 to $0.22.
Upon completion of the share consolidation, there would be stock options outstanding
to purchase an aggregate of 480,000 common shares at exercise prices ranging from
$0.35 to $1.10, based on the current number of outstanding stock options.
The Company currently has outstanding warrants exercisable to purchase an aggregate
of 5,305,880 common shares an exercise price of $0.10. Upon completion of the share
consolidation, there would be warrants outstanding to purchase an aggregate of
1,061,176 common shares at an exercise price of $0.50, based on the current number
of outstanding warrants.
The effective date of the consolidation will be disclosed in a subsequent news release.
Notwithstanding the foregoing, the board of directors may, at its discretion, determine
not to effect the consolidation.
About Roughrider Exploration Limited
Roughrider and its partner Kivalliq Energy are exploring the Genesis uranium project
located in the Wollaston-Mudjatik geological trend extending northeast from
Saskatchewan's Athabasca Basin. In addition, Roughrider has acquired options on the
Brownell Lake and Olsen property options near La Ronge Saskatchewan and the
Silver Ace and Sterling projects in central British Columbia.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is
defined in the policies of the TSX Venture Exchange) accept responsibility for the
adequacy or accuracy of this release.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
INFORMATION
Certain information contained or incorporated by reference in this press release,
including any information as to our strategy, projects, plans or future financial or
operating performance, constitutes "forward-looking statements." All statements,
other than statements of historical fact, are to be considered forward-looking
statements. Forward-looking statements are necessarily based on a number of
estimates and assumptions that, while considered reasonable by the company, are
inherently subject to significant business, economic, geological and competitive
uncertainties and contingencies. 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. Known and unknown
factors could cause actual results to differ materially from those projected in the
forward-looking statements. Such factors include but are not limited to: fluctuations
in market prices, exploration and exploitation successes, continued availability of
capital and financing, changes in national and local government legislation, taxation,
controls, regulations, expropriation or nationalization of property and general
political, economic, market or business conditions. Many of these uncertainties and
contingencies can affect our actual results and could cause actual results to differ
materially from those expressed or implied in any forward-looking statements made
by, or on behalf of, us. Readers are cautioned that forward-looking statements are not
guarantees of future performance and, therefore, readers are advised to rely on their
own evaluation of such uncertainties. All of the forward-looking statements made in
this press release, or incorporated by reference, are qualified by these cautionary
statements. We do not assume any obligation to update any forward-looking
statements.
CONTACT:
Scott Gibson, Chief Executive Officer
604-697‐ 0028
SOURCE: Roughrider Exploration Limited