TORONTO, Jan. 29, 2019 /CNW/ - Richmond Minerals Inc.
(TSX-V: RMD) ("Richmond") is pleased to announce
that, further to its news releases of January 2, 2019, January
3, 2019 and January 8, 2019,
it has completed a non-brokered private placement for aggregate
gross proceeds of $102,500 (the
"Offering"). The Offering consisted of the sale of 2,050,000
flow through units ("FT Units") at a price of $0.05 per FT Unit.
Each FT Unit consisted 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) (the
"Act") and one-half (½) of one common share
purchase warrant (a "FT Warrant"). Each whole FT
Warrant will entitle the holder to purchase one (1) common share at
a price of $0.08 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 of $1,750.00
and a total of 35,000 broker warrants ("Broker Warrant")
were issued as part of finder's fees in connection with the
Offering. Each Broker Warrant will entitle the holder to purchase
one common share in the capital stock of the Richmond at a price of CAN$0.08 until the date
which is two (2) years 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 Act) 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, 2018.
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.