TORONTO, March 12, 2020 /CNW/ - Richmond Minerals Inc.
(TSX-V: RMD) ("Richmond" or
the "Company") is pleased to announce, further to its
news release of November 7, 2019,
that the Company has completed its "Fundamental Acquisition" (as
such term is defined in TSXV Policy 5.3), whereby it purchased a
contiguous group of 99 mineral claim units, referred to as the
Oberzeiring Polymetallic Mine Project (the "Mine").
Under the terms of the definitive agreement, the Company issued
forty-million (40,000,000) common shares (the "Payment
Shares") in the capital stock of the Company to Silbermine
Zeiring Gmbh ("Silbermine") for the purchase of the Mine.
The Payment Shares will be subject to a four-month and one day hold
period.
The Mine claims cover an area of more than 3,000 hectares and
are located near the town of Oberzeiring in the province of Styria,
approximately 80 kilometers northwest of Graz, Austria. Richmond plans an exploration program starting
in the early spring 2020. The working program will include
structural & geochemical analyses, geophysical surveying
followed by diamond drilling of identified targets.
Franz Kozich, Richmond's CEO, commented, "It is exciting for
management and shareholders to complete this acquisition of the
Mine property centrally located within the Styria mining district,
which has a rich history of silver, gold and industrial mineral
production. Richmond plans on
mounting a substantial exploration program using modern exploration
techniques at depth and along strike from the historical Mine
workings, something which has never been undertaken before."
A National Instrument 43-101 geological report for the
Oberzeiring Polymetallic Mine Project dated January 10, 2020 has been prepared in connection
with the Fundamental Acquisition and has been filed on the
Company's SEDAR profile at www.sedar.com.
Early Warning Report
On completion of the Fundamental Acquisition, Silbermine will
hold more than 10% of the issued and outstanding common shares of
the Company on a partially diluted basis.
Prior to the acquisition of the Payment Shares, Silbermine did
not own any common shares of the Company. After the acquisition of
the Payment Shares, Silbermine owns 40,000,000 common shares of the
Company, representing 33.95% of all issued and outstanding
common shares on a partially diluted basis.
The Payment Shares acquired by Silbermine will be held for
investment purposes, and depending on market and other conditions,
Silbermine may from time to time in the future increase or decrease
their respective ownership, control or direction over securities of
the Company through market transactions, private agreements, or
otherwise.
As the number of common shares owned or controlled, directly or
indirectly by Silbermine after the completion of the Fundamental
Acquisition will exceed 10% of the then issued and outstanding
common shares of the Company on a partially diluted basis, in
satisfaction of the requirements of the National Instrument 62-104
– Take-Over Bids And Issuer Bids and National Instrument 62-103
– The Early Warning System and Related Take-Over Bid and Insider
Reporting Issues, an early warning report will be filed under
the Company's SEDAR profile at www.sedar.com.
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 and Offering. There is no guarantee that the
Transaction and Offering 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 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.