/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
TORONTO, Jan. 27, 2020 /CNW/ - Richmond Minerals Inc.
(TSX-V: RMD) ("Richmond") is pleased to announce that it
has completed a first tranche (the "First Tranche") of its
non-brokered private placement (the "Offering"). The First
Tranche consisted of the sale of 6,000,000 ("Units") at a
price of C$0.05 per Unit for
aggregate gross proceeds of C$300,000. Richmond expects to close a second tranche for
up to an additional $100,000 of gross
proceeds on or around February 5,
2020.
Each Unit consists of one (1) common share in the capital stock
of Richmond (a "Common
Share") and one common share purchase warrant (a
"Warrant"). Each Warrant entitles the holder to purchase one
common share at a price of C$0.10 per
common share until the date which is eighteen (18) months following
the date of issuance.
The securities issued and issuable pursuant to the First Tranche
will be subject to a four month and one day statutory hold
period.
The net proceeds from the Offering will used to fund the Phase 1
work program on the proposed purchase of 99 mineral claim units
(the "Transaction") located in the province of Styia,
Austria from Silbermine Zeiring
Gmbh, and for costs related to completion of the proposed
Transaction.
For more details related to the proposed Transaction, please see
the press releases of Richmond
dated November 7, 2019 and
January 15, 2020, as well the
technical report filed on SEDAR entitled: "Technical Report for
Richmond Minerals Inc. on the Oberzeiring Polymetallic Property,
Zeiring Polymetallic Mining District, Styria, Austria" with an effective date of
November 7, 2019.
Closing of the Transaction, which is a fundamental acquisition,
remains subject to final approval of the TSXV and certain other
closing conditions customary in transactions of this nature.
Closing of the Transaction is anticipated to occur on or about
February 5, 2020.
An insider of Richmond
subscribed for 200,000 Units pursuant to the First Tranche. Any
issuance of Units to an insider ("Insider Participation")
will be considered to be a "related party transaction" (within the
meaning of Multilateral Instrument 61-101 ("MI 61-101")).
Richmond has relied on exemptions
from the "formal valuation" and "minority approval" requirements of
MI 61-101 in respect of any Insider Participation.
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: 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
Transaction. There is no guarantee that the Transaction will be
completed on the terms announced in this press release or at all.
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; the ability of Richmond to raise funds pursuant to future
offerings, including the second tranche of the Offering; 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.
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.
SOURCE Richmond Minerals Inc.