Riley Gold Announces Increase in Private Placement
Riley Gold Announces Increase in Private
Placement
Vancouver, British Columbia--(Newsfile Corp. - March 20, 2024) -
Riley Gold Corp. (TSXV: RLYG)
(OTCQB: RLYGF)
("
Riley Gold
" or the "
Company
") announces that due to investor demand it has
increased the size of its private placement previously announced on March 14, 2024.
Riley now
proposes to issue up to 10,000,000 units at C$0.15 per Unit ("
Units
") for total gross proceeds of up to
C$1,500,000 (the "
Private Placement
").
Under the Private Placement, Kinross Gold Corporation will subscribe for a 9.9% ownership interest in
the Company on a partially diluted basis including share purchase warrants (the "
Kinross Investment
").
Each Kinross Investment Unit will be comprised of one common share of the Company (a "
Share
") and
one share purchase warrant (a
"Kinross
Warrant
").
Each Kinross Warrant will entitle Kinross to
purchase for a period of sixty (60) months one additional Share at an exercise price of C$0.25.
The remaining Private Placement Units will be comprised of one Share and one share purchase warrant
(a
"Warrant
").
Each Warrant will entitle the holder to purchase for a period of twenty-four (24) months
one additional Share at an exercise price of C$0.25.
It is expected that certain directors and officers of the Company will participate in the Private Placement
and are "related parties" within the meaning of Multilateral Instrument 61-101 -
Protection of Minority
Security Holders in Special Transactions
of the Canadian Securities Administrators ("
MI 61-101
"). The
participation of certain directors and officers in the Private Placement will constitute a "related party
transaction" under MI 61-101. The Company intends to rely upon exemptions from the formal valuation
and minority approval requirements of MI 61-101.
All securities issued under the Private Placement will be subject to a hold period of four months and one
day from the closing date.
The Company may pay finders' fees in cash.
The Private Placement and
finders' fees are subject to regulatory approval.
Net proceeds of the Private Placement will be used for project exploration and general working capital
purposes.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Todd Hilditch
Chief Executive Officer
Tel: (604) 443-3831
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.
Cautionary statement regarding forward-looking information
This press release contains statements which constitute "forward looking information" under applicable
Canadian securities laws, including statements regarding the closing of the Private Placement and
Kinross Investment, the participation of directors and officers in the Private Placement and the use of
proceeds of the Private Placement, as well as plans, intentions, beliefs and current expectations of the
Company, its directors, or its officers with respect to the future business activities of the Company. The
words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and
similar expressions, as they relate to the Company, or its management, are intended to identify such
forward-looking information. Although Riley Gold believes that the expectations reflected in these
forward-looking statements are reasonable, undue reliance should not be placed on them because Riley
Gold can give no assurance that they will prove to be correct. Since forward looking statements address
future events and conditions, by their very nature they involve inherent risks and uncertainties and the
Company's future business activities may differ materially from those in the forward-looking information
as a result of various factors, including, but not limited to, fluctuations in market prices, successes of the
operations of the Company, continued availability of capital and financing and general economic, market
or business conditions and the ability to obtain the requisite approvals of the TSX Venture Exchange, or
failure to meet other conditions to closing, to the transactions reflected in this press release. The Private
Placement, Kinross Investment and other transactions may not be completed at all if these approvals are
not obtained or some other condition to the closing is not satisfied. Investors are cautioned that any such
forward-looking information is not a guarantee of future business activities and involves risks and
uncertainties. Additional information on these and other factors that could affect Riley Gold operations
and financial results are included in reports on file with Canadian securities regulatory authorities and
may be accessed through the SEDAR+ website (
www.sedarplus.ca
).There can be no assurances that
such information will prove accurate and, therefore, readers are advised to rely on their own evaluation of
such uncertainties. The Company does not assume any obligation to update any forward-looking
information except as required under the applicable securities laws.
THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO THE UNITED STATES NEWSWIRE
SERVICES
OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS
RESTRICTION
MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAWS.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/202331