VANCOUVER, May 3, 2019 /CNW/ - Regency Gold Corp.
("Regency" or the "Company") (NEX:RAU.H) provides an
update with respect to its news release dated February 13, 2019 regarding the acquisition (the
"Acquisition") of Vanadium North Resources Inc.
("Vanadium North").
Conditional Approval
The Company is pleased to announce that it has received
conditional approval from the TSX Venture Exchange ("TSXV") for the
previously announced acquisition of Vanadium North.
Michael Konnert stated "We are
very excited to announce conditional approval of the acquisition of
Vanadium North. Galen McNamara, CEO
of Vanadium North, has assembled an excellent land package in the
Northwest Territories and we
believe the project has significant exploration upside.
Additionally, Regency has a LOI with Cellcube Energy Storage
Systems Inc. whereby it may acquire the Bisoni-McKay and Bisoni-Rio
vanadium projects in Nevada. It is
our goal for Regency to become a leader in the North American
vanadium space."
Exercise of Warrants
The Company also announces the exercise of 11,111,112 warrants
at an exercise price of C$0.12 each,
for aggregate consideration of C$1,333,333. A total of 11,111,112 common shares
were issued in connection with the warrant exercise.
Private Placement
The Company also reports that the previously announced private
placement financing is underway. Regency will raise up to
C$2-million through the issuance of
up to eight million common shares of the Company at a price of
C$0.25 cents per share. In the event
the private placement is oversubscribed, the Company will make
provision for an overallotment option to allow the Company to
increase the size of the private placement by up to 20 per cent and
issue an additional two million common shares for additional gross
proceeds of C$500,000. The pricing of
the financing was determined in the context of the market. The
common shares to be issued pursuant to the financing will be
subject to a four-month hold period.
The net proceeds from the financing are expected to be used to
finance exploration activities at the Company's property and for
working capital purposes.
Board and Management
Bill Radvak has resigned from his
role as President, CEO and Director of the Company effective
April 29, 2019. Regency thanks
Bill for his years of service and wishes him well on his future
endeavours.
The Company is pleased to announce that on completion of the
Acquisition, Simon Dyakowski will be
joining the Board of Directors. Mr. Dyakowski has over ten
years of corporate finance, corporate development and capital
markets advisory experience. He holds an MBA in Finance from the
University of British Columbia, is a
CFA charter holder and holds a Bachelor of Management and
Organizational Studies from the University of
Western Ontario. As an independent capital markets
consultant, he advises venture stage and growth-oriented public
market issuers on deal structuring, capital markets, and corporate
development strategies. His professional experience is in equity
research and equity sales coverage with previous positions held at
ACM Advisors Ltd. and Leede Financial Markets Inc. Mr. Dyakowski is
the President and CEO of GSP Resource Corp. and the CFO of GK
Resources Ltd., which are Exchange listed resource
issuers.
Loan to Vanadium North
On or about March 26, 2019, the
Company extended a loan to Vanadium North in the amount of
C$150,000 (the "Loan") to be
used to fund exploration and for general working capital. The
Company and Vanadium North are entering into amended terms of the
Loan, which among other things, will secure the Loan against the
assets of Vanadium North, in compliance with Policy 5.2 of the TSX
Venture Exchange (the "Exchange"). Further, the full
amount of the Loan is repayable in cash, on an interest free basis,
on demand.
About Regency Gold Corp.
Regency Gold Corp is a mineral exploration company based in
Canada. It is engaged in the
identification, acquisition, exploration and, development of
exploration and evaluation assets. Completion of the transaction
is subject to a number of conditions, including but not limited to,
Exchange acceptance and if applicable, disinterested shareholder
approval. Where applicable, the transaction cannot close until the
required shareholder approval is obtained. There can be no
assurance that the transaction will be completed as proposed or at
all.
Investors are cautioned that, except as disclosed in the
management information circular or filing statement to be prepared
in connection with the transaction, any information released or
received with respect to the transaction may not be accurate or
complete and should not be relied upon. Trading in the securities
of Regency Gold Corp. should be considered highly
speculative.
The TSX Venture Exchange Inc. has in no way passed upon the
merits of the proposed transaction and has neither approved nor
disapproved the contents of this news release.
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.
ON BEHALF OF THE BOARD OF DIRECTORS
"Kelsey Chin"
Kelsey
Chin
Chief Financial Officer
Forward-Looking Information
This news release contains forward-looking statements and
information that are based on the beliefs of management and reflect
the Company's current expectations. When used in this news release,
the words "estimate", "project", "belief", "anticipate", "intend",
"expect", "plan", "predict", "may" or "should" and the negative of
these words, or such variations thereon or comparable terminology,
are intended to identify forward-looking statements and
information. The forward-looking statements and information in this
news release include but are not limited to any statements
concerning the expected results of the Acquisition; completion
of the transactions contemplated by the DA and the anticipated
timing thereof; completion of the Financing and the anticipated
timing thereof and the expected use of proceeds from the
Financing.
By their nature, forward-looking statements involve known and
unknown risks, uncertainties and other factors which may cause our
actual results, performance or achievements, or other future
events, to be materially different from any future results,
performance or achievements expressed or implied by such
forward-looking statements.
The forward-looking information contained in this news release
represents the expectations of the Company as of the date of this
news release and, accordingly, is subject to change after such
date. Readers should not place undue importance on forward-looking
information and should not rely upon this information as of any
other date. While the Company may elect to, it does not undertake
to update this information at any particular time except as
required in accordance with applicable laws.
SOURCE Regency Gold Corp.
