Business
Royal Road Announces Closing of C$11.5 Million Bought Deal Financing
All monetary amounts are expressed in Canadian Dollars, unless otherwise indicated. Toronto...
About this update from Royal Road Minerals Limited
[{"type":"text","content":"Royal Road Announces Closing of C$11.5 Million Bought Deal FinancingAll monetary amounts are expressed in Canadian Dollars, unless otherwise indicated.Toronto, Ontario--(Newsfile Corp. - August 4, 2020) - Royal Road Minerals Limited (TSXV: RYR) (\"Royal Road\" or the \"Company\") is pleased to announce that further to its news release dated July 14, 2020, the Company has closed its previously announced \"bought deal\" prospectus offering, including the full exercise of the over-allotment option granted to the underwriters, through the issuance of an aggregate of 31,222,500 ordinary shares (the \"Shares\") of the Company at a price of C$0.37 per Share (the \"Offering Price\") for aggregate gross proceeds of C$11,552,325 (the \"Offering\"). The Offering was led by Stifel GMP (the \"Lead Underwriter\"), on behalf of a syndicate of underwriters, including Pollitt & Co. Inc., Sprott Capital Partners LP, Leede Jones Gable Inc. and Red Cloud Securities Inc. (together with the Lead Underwriter, the \"Underwriters\"). As consideration for their services in connection with the Offering, the Underwriters received: (i) a cash commission of $693,139.50, being equal to 6% of the gross proceeds realized on the sale of the Ordinary Shares under the Offering; and (ii) an aggregate of 1,873,350 broker warrants (the \"Broker Warrants\"), exercisable to acquire such number of ordinary shares of the Company (each a \"Broker Warrant Share\") representing 6% of the Ordinary Shares sold pursuant to the Offering. Each Broker Warrant entitles the holder thereof to acquire one Broker Warrant Share at the Offering Price for a period of twenty-four (24) months from the Closing Date.The Company plans to use the net proceeds from the Offering to fund exploration expenditures at the Company's exploration projects in Nicaragua and Colombia as well as for working capital and general corporate purposes.The Shares were offered by way of a short form prospectus dated July 29, 2020, which was filed in all of the provinces of Canada, except Québec. The Shares were also sold to U.S. buyers on a private placement basis pursuant to an exemption from the registration requirements in Rule 144A of the United States Securities Act of 1933, as amended, and other jurisdictions outside of Canada and the United States.The transaction constituted a \"related party trans...