VANCOUVER, June 9, 2017 /CNW/ - Rathdowney Resources
Ltd. ("Rathdowney" or the "Company") (TSXV: RTH) announces that it
plans to complete a private placement of up to approximately
3,000,000 ("Units") of the Company at a price of $0.19 per Unit (the "Issue Price") for proceeds
of up to approximately $570,000 (the
"Offering").
Each Unit shall consist of one common share in the capital of
the Company (a "Share") and one common share purchase warrant (a
"Warrant"). Each Warrant shall entitle the holder to purchase one
additional Share (a "Warrant Share") at a price of $0.24 per Warrant Share for a period of two years
from the date of closing of the Offering. Finders fees of up to 6%
may be payable on a portion of the placement.
The Units, Shares and Warrant Shares will be subject to
applicable resale restrictions, including a four month hold period
from date of closing of the Offering under applicable Canadian
securities laws. Completion of the Offering is subject to
regulatory approval, including approval of the TSX Venture
Exchange.
Proceeds will be used to advance Polish permitting activities
and further refine mining engineering work to progress the
Company's Olza zinc-lead-silver project towards feasibility and
completion of permit licensing, as well as for general corporate
working capital purposes.
About Rathdowney and Project Olza
Rathdowney Resources Ltd. is focused on advancing Project Olza
through permitting and into production. Project Olza is located in
the Upper Silesian Mining District of southwestern Poland, a world-class region of Mississippi
Valley-type zinc-lead deposits with well-developed mining
infrastructure. A railway line through the Olza project-area
provides direct access to smelters in Poland, elsewhere in Europe and to tidewater to reach off-shore
facilities.
Strong potential financial returns are indicated for a 6,000 tpd
low-cost, bulk-tonnage underground operation and conventional
treatment facility, producing two clean, low-iron, marketable
concentrates (Preliminary Economic Assessment)1. In
addition, extensive property-wide historical drilling by the Polish
State as well as recent drilling by Rathdowney have shown excellent
potential to expand mineral resources to support a long-life
mine.
David Copeland, PEng., Chairman
of Rathdowney and a qualified person as defined under NI43-101, has
reviewed the technical information in this release.
On behalf of the Board of Directors
David Copeland
Chairman
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.
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1 For
additional details, see Rathdowney's April 20, 2015 news release
and December 31, 2014 Preliminary Economic Assessment Technical
Report which is filed at www.sedar.com.
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This release includes certain statements that may be deemed
"forward-looking statements". All statements in this release, other
than statements of historical facts, that address exploration
drilling, exploitation activities and events or developments that
the Company expects, are forward looking statements. 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 and actual results or
developments may differ materially from those in the
forward-looking statements. Assumptions used by the Company to
develop forward-looking statements include the following: the Olza
project will obtain all required environmental and other permits
and all land use and other licenses, studies and development of the
Olza project will continue to be positive, and no geological or
technical problems will occur. Factors that could cause actual
results to differ materially from those in forward-looking
statements include market prices, exploitation and exploration
successes, continuity of mineralization, potential environmental
issues and liabilities associated with exploration, development and
mining activities, uncertainties related to the ability to obtain
necessary permits, licenses and title and delays due to third party
opposition, changes in government policies regarding mining and
natural resource exploration and exploitation, continued
availability of capital and financing, and general economic, market
or business conditions. Investors are cautioned that any such
statements are not guarantees of future performance and actual
results or developments may differ materially from those projected
in the forward-looking statements. For more information on the
Company, investors should review the Company's continuous
disclosure filings that are available at www.sedar.com.
SOURCE Rathdowney Resources Ltd.