Richmond Minerals Inc. Completes First Tranche of Non-Brokered Private Placement and Provides Update on Fundamental Acquisition
Richmond Minerals Inc. Completes First
Tranche of Non-Brokered Private Placement
and Provides Update on Fundamental
Acquisition
/NOT FOR DISTRIBUTION TO
UNITED STATES
NEWSWIRE SERVICES OR FOR
DISSEMINATION IN
THE UNITED STATES
/
TORONTO
,
Jan. 27, 2020
/CNW/ - Richmond Minerals Inc. (
TSX-V: RMD
) ("
Richmond
") is pleased
to announce that it has completed a first tranche (the "
First Tranche
") of its non-brokered private
placement (the "
Offering
"). The First Tranche consisted of the sale of 6,000,000 ("
Units
") at a price
of
C$0.05
per Unit for aggregate gross proceeds of
C$300,000
.
Richmond
expects to close a
second tranche for up to an additional
$100,000
of gross proceeds on or around
February 5, 2020
.
Each Unit consists of one (1) common share in the capital stock of
Richmond
(a
"Common Share
")
and one common share purchase warrant (a "
Warrant
"). Each Warrant entitles the holder to
purchase one common share at a price of
C$0.10
per common share until the date which is eighteen
(18) months following the date of issuance.
The securities issued and issuable pursuant to the First Tranche will be subject to a four month and
one day statutory hold period.
The net proceeds from the Offering will used to fund the Phase 1 work program on the proposed
purchase of 99 mineral claim units (the "
Transaction
") located in the province of Styia,
Austria
from
Silbermine Zeiring Gmbh, and for costs related to completion of the proposed Transaction.
For more details related to the proposed Transaction, please see the press releases of
Richmond
dated
November 7, 2019
and
January 15, 2020
, as well the technical report filed on SEDAR entitled:
"
Technical Report for Richmond Minerals Inc. on the Oberzeiring Polymetallic Property, Zeiring
Polymetallic Mining District, Styria,
Austria
" with an effective date of
November 7, 2019
.
Closing of the Transaction, which is a fundamental acquisition, remains subject to final approval of
the TSXV and certain other closing conditions customary in transactions of this nature. Closing of the
Transaction is anticipated to occur on or about
February 5, 2020
.
An insider of
Richmond
subscribed for 200,000 Units pursuant to the First Tranche. Any issuance of
Units to an insider ("
Insider Participation
") will be considered to be a "related party transaction"
(within the meaning of Multilateral Instrument 61-101 ("MI 61-101")).
Richmond
has relied on
exemptions from the "formal valuation" and "minority approval" requirements of MI 61-101 in respect
of any Insider Participation.
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.
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.
SOURCE
Richmond Minerals Inc.
View original content:
http://www.newswire.ca/en/releases/archive/January2020/27/c0640.html
%SEDAR: 00009282E
For further information:
Franz Kozich, President, Warren Hawkins, P. Eng., Exploration Manager,
E: [email protected], Tel: 416-603-2114
CO: Richmond Minerals Inc.
CNW 07:30e 27-JAN-20