VANCOUVER, Jan. 11, 2017 /CNW/ - Rathdowney
Resources Ltd. ("Rathdowney" or the "Company") (TSXV: RTH)
announces that it plans to complete a private placement of up to
approximately 26,315,790 units ("Units") of the Company at a price
of $0.19 per Unit (the "Issue
Price") for proceeds of up to approximately $5 million (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.
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
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 historic drilling by the
Polish State as well as recent drilling by Rathdowney have shown
excellent potential to expand mineral resources2 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.
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.
2 Current mineral resources: 24.4 million tonnes of
inferred @ 7.02% Zn+Pb (5.53% Zn, 1.49% Pb) estimated at a 2.0% Zn
cutoff; Mineral resources that are not mineral reserves do not have
demonstrated economic viability.
Historical estimate (1990) Zawiercie I & II: 77 Mt @ 6.15%
Zn+Pb by the Polish State Geological Institute (PSGI) from PSGI
1992 report based on the Polish resource classification system,
which is very similar to the Soviet classification system. A QP has
not done sufficient work to classify the estimate as current
mineral resources and the Company is not treating it as
current.
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.
Information Concerning Estimates of Inferred Resources
This news release uses the term "inferred mineral resources".
Rathdowney Resources Ltd. advises investors that although these
terms are recognized and required by Canadian regulations (under
National Instrument 43-101 Standards of Disclosure for Mineral
Projects), the U.S. Securities and Exchange Commission does not
recognize them. Investors are cautioned not to assume that any part
or all of the mineral deposits in these categories will ever be
converted into reserves. In addition, "inferred resources"
have a great amount of uncertainty as to their existence, and
economic and legal feasibility. It cannot be assumed that all or
any part of an Inferred Mineral Resource will ever be upgraded to a
higher category. Under Canadian rules, estimates of Inferred
Mineral Resources may not form the basis of feasibility or
pre-feasibility studies, or economic studies except for Preliminary
Economic Assessment as defined under 43-101. Investors are
cautioned not to assume that part or all of an inferred resource
exists, or is economically or legally mineable.
SOURCE Rathdowney Resources Ltd.