Search Site

Signs Definitive Agreement to Acquire 100% Interest in all Ridley Lake Mining Claims in the Mining District of Porcupine and Announces Non-brokered Flow-through Private Placement

TORONTOJune 27, 2017 /CNW/ – Richmond Minerals Inc. (TSX-V: RMD) (“Richmond“) is pleased to announce that it has entered into a definitive purchase and sale agreement (the “Agreement“) to acquire from a private party (the “Vendor“) a 100% undivided interest in five (5) unpatented mining claims and a 50% undivided interest in thirty-five (35) unpatented mining claims (the “Properties“) situated in the mining district of Porcupine, in the township of Rollo, Ontario (the “Transaction“).

As a result of the Transaction, if completed, Richmond will own 100% of the Ridley Lake Properties.

Highlights of the Transaction

As consideration for the Transaction, Richmond will:

  • Issue 1,000,000 common shares to the Vendor as of the Closing Date (as hereinafter defined);
  • Issue 1,000,000 common shares to the Vendor as of December 15, 2017;
  • Pay a cash consideration of $102,000 (the “Cash Consideration“) to be held in escrow pending the completion of transactions contemplated by the Agreement on the Closing Date. The Cash Consideration is to be used by the Vendor solely for the purpose of subscribing for units of Richmond pursuant to the Offering (as hereinafter defined); and
  • Grant to the Vendor and another party an aggregate two percent (2%) net smelter royalty on the Properties (one-half of the royalty may be purchased at any time for $1.0 million).

The Transaction is subject to the receipt of applicable regulatory approvals by Richmond and the satisfaction of certain other closing conditions customary in transactions of this nature. The Transaction is expected to close on or before July 31, 2017 (the “Closing Date“).

The Private Placement

Richmond intends to complete a non-brokered private placement of up to 5,000,000 units (the “Units“) of Richmond at a price of $0.06 per Unit (the “Issue Price“) for gross proceeds of up to $300,000 (the “Offering“). Richmond may, in its sole discretion, increase the size of the Offering, by up to 25% for an additional 1,250,000 Units at the Issue Price.

Each Unit will consist of one (1) common share in the capital stock of Richmond that is a “flow-through share” within the meaning of the Income Tax Act (Canada) (the “Act“) and one-half of a common share purchase warrant (the “Warrant“). Each whole Warrant will entitle the holder thereof to acquire one common share, which is not a “flow-through share” within the meaning of the Act, of Richmond at a price of $0.10 until a period of two (2) years following the closing date of the Offering, whereupon the Warrants will expire. The securities issued and issuable pursuant to the Offering will be subject to a four month and one day statutory hold period.

The closing of the Offering is anticipated to occur on or about July 31, 2017.

Richmond intends to use the net proceeds from the Offering to fund continued exploration on Richmond’s Ridley Lake Property assets.

The Offering is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange and applicable securities regulatory authorities.

The securities offered will not be 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 Statements

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 news release.

This news release contains forward-looking information that involves substantial known and unknown risks and uncertainties, most of which are beyond the control of Richmond. Forward-looking statements include estimates and statements that describe Richmond’s future plans, objectives or goals, including words to the effect that Richmond or its management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, or “plan”. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to RichmondRichmond provides no assurance that actual results will meet management’s expectations. Risks, uncertainties and other factors involved with forward-looking information 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, statements, details of the exploration results, potential mineralization, the company’s portfolio, treasury, management team and enhanced capital markets profile, the proposed private placement, the timing of the Transaction, the estimation of mineral resources, exploration and mine development plans, timing of the commencement of operations and estimates of market conditions. Factors that could cause actual results to differ materially from such forward-looking information include, but are not  limited to, failure or inability to complete the Transaction and the Offering on the terms as announced or at all, regulatory approval processes, failure to identify mineral resources, delays in obtaining or failures to obtain required governmental, regulatory, environmental or other project approvals, political risks, inability to fulfill the duty to accommodate First Nations and other indigenous peoples, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects, capital and operating costs varying significantly from estimates and the other risks involved in the mineral exploration and development industry, and those risks set out in Richmond’s public documents filed on SEDAR. Although Richmondbelieves 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. Richmonddisclaims 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. 

For further information: Warren Hawkins, P. Eng. Exploration Manager, E:, Tel: 416-603-2114, Fax: 416-603-8436

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these <abbr title="HyperText Markup Language">HTML</abbr> tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>