TORONTO, Nov. 30, 2017 /CNW/ - Richmond Minerals Inc.
(TSX-V: RMD) ("Richmond") is pleased to announce
that, further to its announcement on October
24, 2017, it has completed a non-brokered private placement
for aggregate gross proceeds of $332,887 (the "Offering"). The Offering
consisted of the sale of 1,656,448 hard dollar units
("Units") at a price of CAN$0.06 per Unit and 2,918,750 flow
through units (FT Units") at a price of
CAN$0.08.
Each Unit consists of one (1) common share in the capital stock
of the Richmond ("Common
Share") and one common share purchase warrant (a
"Warrant"). Each Warrant entitles the holder to purchase one
common share at a price of CAN$0.10 per common share until the date
which is two (2) years following the closing date of the Offering,
whereupon the Warrants will expire.
Each FT Unit consists of one (1) common share in the capital
stock of the Richmond that is a
"flow-through share" within the meaning of the Income Tax
Act (Canada) ("Common
Share") and one-half (½) of one common share purchase warrant
(a "FT Warrant"). Each whole FT Warrant will entitle
the holder to purchase one common share at a price of CAN$0.10 per
common share until the date which is two (2) years following the
closing date of the Offering, whereupon the FT Warrants will
expire.
A cash finder's fee equal to 7% of the total proceeds raised by
finders pursuant to the Offering was paid and a total of 122,500
broker warrants ("Broker Warrant") were issued as part of
finders fees in connection with their involvement in the Offering.
Each Broker Warrant will entitle the holder to purchase one Common
Share at a price of CAN$0.10 until the date which is twenty-four
(24) months following the closing date of the Offering, whereupon
the Broker Warrants will expire.
Richmond intends to use the net
proceeds from the Offering to fund "Canadian exploration expenses"
(within the meaning of the Income Tax Act (Canada)) and for continued exploration on
Richmond's assets and for general
working capital purposes. Richmond
will ensure that the proceeds received from the amount allocated to
the Common Shares comprising part of the FT Units sold will be used
to incur expenses which qualify as Canadian Exploration Expenses
and Flow-Through Mining Expenditures for purposes of the Act, and
will renounce such expenses with an effective date of no later than
December 31, 2017.
The securities issued and issuable pursuant to the Offering will
be subject to a four month and one day statutory hold period.
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: 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.
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 Offering. 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;
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.
SOURCE Richmond Minerals Inc.