VANCOUVER, Aug. 12, 2014 /CNW/ - Rathdowney Resources Ltd.
("Rathdowney" or the "Company") (TSXV: RTH) announces it has
completed the first tranche of a private placement of approximately
27,840,000 common shares at a price of $0.25 per share for gross proceeds of
$6,960,000. The shares are subject to
applicable resale restrictions, including a 4 month hold under
Canadian legislation. Fees of up to 6% are payable on a portion of
the financing.
One of the placees, Geologic Resource Partners
LLC ("Geologic") has subscribed for 22,800,000 shares and upon
completion of the financing will hold 19.6% of the shares of the
Company. Geologic also has the right to nominate two
individuals for appointment to the Company's Board of Directors.
Concurrent with the closing, George
Ireland, Chief Investment Officer and Managing Member of
Geologic, who has over 30 years of experience in all aspects of the
resource sector and Myron
Manternach, who is a consultant to the investment committee
of Geologic and has 20 years of experience in managing investments,
with significant experience in the natural resources and technology
sectors, have agreed to join Rathdowney's Board. Robert Schafer and Stephen Hodgson have resigned from the
Board.
Proceeds from the financing will be used to
advance Phase II activities at Rathdowney's flagship Olza
Zinc-Lead-Silver Project in Poland
and for working capital purposes.
President and CEO Robert
Konski said, "On behalf of the Rathdowney Board of
Directors, I would like to welcome the representatives of our major
shareholder to the Board. We look forward to their knowledge
and advice as the project advances.
I would also like to thank Bob Schafer and Steve
Hodgson for their insights and guidance to the Company over
the past three years."
About Rathdowney
Rathdowney Resources Ltd. is an exploration and
development company focused on advancing the Olza zinc-lead-silver
project in Poland through
permitting and into production. Rathdowney is associated with
Hunter Dickinson Inc. ("HDI") a diversified, global mine
development company with a 25-year history of mineral development
success.
About Project Olza
Project Olza is located in the Upper Silesian
Mining District of southwestern Poland, a world-class region of Mississippi
Valley-type deposits with well-developed mining infrastructure.
Easily accessible by road, the Olza project site is a one-hour
drive from Krakow, a major city with full services, including an
international airport. The deposits at Olza are along strike
from the long-life Pomorzany zinc-lead mine and 30 km from the ZGH
zinc smelter at Boleslaw. A railway line to the smelter runs
through the Olza project-area.
Since 2010, Rathdowney has invested over
$16 million at Olza. The Company's
Phase I confirmatory drilling program built on the extensive drill
database assembled by the Polish Geological Survey to delimit 21.2
million tonnes of inferred mineral resources, grading 7.42%
combined zinc and lead1, with excellent potential for
expansion. These mineral resources provide the foundation for
engineering, environmental baseline and other Phase II technical
studies designed to advance project planning and permitting.
David Copeland,
PEng, a qualified person and a director of the Company, has
reviewed the technical information in this release.
For further details on Rathdowney and Project Olza,
please visit the Company's website:
www.rathdowneyresources.com.
On behalf of the Board of Directors
Robert Konski
President & CEO
1 Estimated at a 2.0% zinc cutoff; individual grades
are 5.88% zinc and 1.54% lead (see Rathdowney News Release dated
September 11, 2012). Silver was not analyzed during historical
drilling so was not included in the estimate. |
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.
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, potential environmental issues or liabilities associated
with exploration, development and mining activities, exploitation
and exploration successes, continuity of mineralization,
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.