Royal Road Minerals Closes Private Placement Financing Transactions
Toronto, Feb. 15, 2018 - Royal Road Minerals Ltd. (TSXV: RYR) ("Royal Road Minerals" or the "Company"), a gold and copper focused mineral exploration and development company, is pleased to announce that it has closed its two previously announced financing transactions (collectively, the "Financing Transactions"), pursuant to which the Company issued an aggregate of 33,620,487 ordinary shares ("Ordinary Shares") of the Company at a price of C$0.16 per Ordinary Share for aggregate gross proceeds of C$5,379,278. The Company also announces that it has purchased an additional 5% of the equity of Minerales Camino Real S.A.S. ("RRM Colombia"), increasing its ownership interest to 97% of the total equity of RRM Colombia. RRM Colombia is a Colombian corporation through which the Company holds various mineral exploration interests and carries on its operations in Colombia. Pursuant to the Financing Transactions, the Company issued, on a private placement basis, 10,178,437 Ordinary Shares to Barrick Gold Corp. ("Barrick") in completion of the previously announced strategic investment in the Company by Barrick, and 23,442,050 Ordinary Shares pursuant to a brokered offering led by Pollitt & Co. Inc., as lead agent, together with Sprott Capital Partners, a division of Sprott Private Wealth LP, as agents (the "Agents") to the Company. The Company also issued 2,000,000 Ordinary Shares to the seller in consideration for the 5% additional equity interest in RRM Colombia acquired by the Company.
In connection with the Financing Transactions, the Company (i) paid a total cash commission equal to 6.0% of the aggregate gross proceeds, and (ii) issued broker warrants (the "Broker Warrants") equal to 6.0% of the Ordinary Shares sold, to the Agents. Each Broker Warrant entitles the holder to acquire one Ordinary Share at a price of $0.16 until February 15, 2020.
The net proceeds from the Financing Transactions are expected to be used for exploration and development at the Company's Colombian and Nicaraguan properties and for general corporate and working capital purposes. All Ordinary Shares issued in the Financing Transactions are subject to a statutory four month hold period.
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.
Cautionary statement:
This news release may contain certain information that constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as "plan," "expect," "project," "intend," "believe," "anticipate" and other similar words, or statements that certain events or conditions "may" or "will" occur and include statements regarding the use of proceeds from the private placement transactions. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the inherent risks involved in financing transactions, exploration and development of mineral properties, the hiring and retention of directors and officers, the uncertainties involved in interpreting drilling results and other geological data, fluctuating metal prices, permitting and licensing and other factors described above and in the Company's most recent annual information form under the heading "Risk Factors", which has been filed electronically by means of the Canadian Securities Administrators' website located at www.sedar.com. The Company disclaims any obligation to update or revise any forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.
For further information please contact:
Dr. Tim Coughlin
President and Chief Executive Officer
USA-Canada toll free 1800 6389205
+44 (0)1534 887166
+44 (0)7797 742800
info@royalroadminerals.com