Business
Richmond Minerals Inc. Completes $68,620 Non-Brokered Private Placement
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES TORONTO, May 02, 2019 (GLOBE NEWSWIRE) -- Richmond Minerals In
About this update from Richmond Minerals Inc.
[{"type":"text","content":" NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES TORONTO, May 02, 2019 (GLOBE NEWSWIRE) -- Richmond Minerals Inc. (TSX-V: RMD) (“Richmond”) is pleased to announce that, further to its news releases of April 5, 2019, it has completed a non-brokered private placement for aggregate gross proceeds of $68,620 (the “Offering”). The Offering consisted of the sale of 972,400 hard dollar units (“Units”) at a price of CAN$0.05 per Unit and 400,000 flow through units (FT Units”) at a price of CAN$0.05. Each Unit consists of one (1) common share in the capital stock of Richmond (“Common Share”) and one common share purchase warrant (a “Warrant”). Each Warrant entitles the holder to purchase one common share at a price of CAN$0.07 per common share until the date which is two (2) years following the closing date of the Offering, whereupon the Warrants will expire. Each FT Unit consists of one (1) common share in the capital stock of Richmond that is a “flow-through share” within the meaning of the Income Tax Act (Canada) (“FT Share”) and one Warrant. Richmond intends to use the net proceeds from the Offering to fund “Canadian exploration expenses” (within the meaning of the Act) and for continued exploration on Richmond’s assets and for general working capital purposes. Richmond will ensure that the proceeds received from the amount allocated to the common shares comprising part of the FT Units sold will be used to incur expenses which qualify as Canadian Exploration Expenses and Flow-Through Mining Expenditures for purposes of the Act and will renounce such expenses with an effective date of no later than December 31, 2019. The securities issued and issuable pursuant to the Offering will be subject to a four month and one day statutory hold period. Related Party Transaction In connection with the Offering, Gregor K. Emmert, Jr., an insider of Richmond, acquired 972,400 Units. The acquisition of Units pursuant to the Offering by Mr. Emmert is considered a \"related party transaction\" pursuant to Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions (“MI 61-101”). Richmond is relying on an exemption from the formal valuation requirements of MI 61-101 available on the basis of the securities of Richmond not being listed on specified markets,...