Business
Richmond Minerals Announces Closing of $415,000 Non-Brokered Private Placement
TORONTO , April 2, 2014 /CNW/ - Further to its press release dated March 13, 2014 , Rich...
About this update from Richmond Minerals Inc.
[{"type":"text","content":"\n\nTORONTO, April 2, 2014 /CNW/ - Further to its press release dated March 13, 2014, Richmond Minerals Inc. (TSX-V: RMD) (\"Richmond\") is pleased to announce the completion of its previously announced non-brokered private placement financing for aggregate gross proceeds of $415,000 (the \"Offering\"). The Offering consisted of the sale of 100,000 flow-through units (\"FT Units\") at $0.10 per FT Unit and the sale of 5,788,571 hard dollar units (\"HD Units\") at $0.07 per HD Unit.\n\nEach FT Unit consisted of one common share in the capital stock of Richmond (\"Common Share\") issued on a flow-through basis and one Common Share purchase warrant (\"FT Warrant\"). Each FT Warrant will entitle the holder purchase one Common Share a price of $0.15 per Common Share until April 2, 2015, and for a price of $0.30 from April 3, 2015 until April 2, 2016, whereupon the FT Warrants expire. Each HD Unit consisted of one Common Share and one Common Share purchase warrant (\"HD Warrant\"). Each HD Warrant will entitle the holder to acquire one Common Share for $0.10 for a period of five (5) years from the date of issuance. \n\nIn connection with the Offering, a 7% and 10% finder's fee was paid in cash to two eligible finders and a total of 104,250 finders' warrants (\"Finders' Warrants\") were issued equal to 7% and 10%, as applicable, of the number of FT Units and HD Units placed by such finders pursuant to the Offering. Each Finders' Warrant entitles the holder thereof to acquire one HD Unit for $0.07 until April 2, 2016. \n\nAll securities issued pursuant to the Offering are subject to a statutory hold period expiring on August 3, 2014. \n\nFranz Kozich, President and Chief Executive of Richmond, and therefore a \"related party\" to Richmond, as that term is defined in Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions (\"MI 61-101\"), subscribed for an aggregate of 150,000 HD Units pursuant to the Offering, constituting a related party transaction pursuant MI 61-101. Richmond relied on Section 5.5(a) of MI 61-101 for an exemption from the formal valuation requirement and Section 5.7(1)(a) of MI 61-101 for an exemption from the minority shareholder approval requirement of MI 61-101 as the fair market value of the transaction did not exceed 25% of the Company's market capitalization.\n...