VANCOUVER, June 27, 2018 /CNW/ - Rathdowney Resources
Ltd. ("Rathdowney" or the "Company") (TSX‐V: RTH) announces that it
has secured two loans for aggregate proceeds of $230,500 (the "Loan").
The Company has settled an agreement with Orfo Properties Ltd.
("Orfo"), an arm's length third party, with respect to a
$100,000 loan (the "Orfo Loan"). The
Orfo Loan is unsecured, will bear interest at a rate of 15% per
annum and is repayable immediately on the earlier of: (a) the date
of completion by the Company of one or more equity financings
raising aggregate gross proceeds in the minimum amount of
$1,000,000; (b) the two year
anniversary of the advance of the principal amount of the Loan; or
(c) immediately on demand if there occurs an Event of a Default
which remains uncured.
In connection with the Orfo Loan, Rathdowney will issue to Orfo
a loan bonus in the form of 833,333 warrants (the "Bonus
Warrants"), each entitling the holder to acquire one common share
of Rathdowney for two years at a price of $0.12 per share. The Bonus Warrants will be
subject to a four month hold period commencing from the date of
issuance thereof. The Orfo Loan and Bonus Warrants are subject to
acceptance by the TSX Venture Exchange.
In addition to the Orfo Loan, the Company has settled an
agreement with David Copeland, a
non-arm's length director and officer of the Company, with respect
to a $130,500 loan (the "Copeland
Loan") on the same terms as the Orfo Loan, except that no bonus
warrants or other bonus compensation is payable to Mr. Copeland
under the terms of the Copeland Loan.
The Loan will be used for working capital for Rathdowney.
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 in size of
Mississippi Valley-type deposits with well-developed mining
infrastructure. Easily accessible by paved roads, 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 25 km from the ZGH zinc smelter at Boleslaw. A
railway line runs through the Olza project-area, linking it to the
ZGHB smelter and to ports on the Baltic Sea, with access to
smelters in the rest of Europe.
Rathdowney is committed to responsible mineral exploration and
development as presented through our local Project Olza community
team, which provide updates on activities and potential
opportunities to local communities, and governments at all
levels.
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.
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.
SOURCE Rathdowney Resources Ltd.