Business
Royal Road Minerals Announces Strategic Investment by Barrick Gold Corporation and Concurrent Private Placement Financing
Toronto, Ontario--(Newsfile Corp. - January 24, 2018) - Royal Road Minerals Limited (TSXV: RYR...
About this update from Royal Road Minerals Limited
[{"type":"text","content":"Royal Road Minerals Announces Strategic Investment by Barrick Gold Corporation and Concurrent Private Placement FinancingToronto, Ontario--(Newsfile Corp. - January 24, 2018) - Royal Road Minerals Limited (TSXV: RYR) (\"Royal Road Minerals\" or the \"Company\"), a gold and copper focused mineral exploration and development company, is pleased to announce that it has entered into a subscription agreement (the \"Subscription Agreement\") dated January 23, 2018 with Barrick Gold Corporation (\"Barrick\") in connection with a proposed offering by way of private placement (the \"Financing\") of ordinary shares (\"Ordinary Shares\") in the capital of the Company. Under the terms of the Subscription Agreement, Barrick has agreed to purchase from the Company an aggregate of 9,875,876 Ordinary Shares (the \"Purchased Shares\") at a purchase price of C$0.16 per Ordinary Share (the \"Issue Price\"). On or before the closing of the issuance and sale of the Purchased Shares, the Company also intends to complete the Financing, pursuant to which it plans to issue an additional 21,374,124 Ordinary Shares (the \"Offering Shares\") at the Issue Price, for aggregate gross proceeds from the issuance of the Purchased Shares and the Offering Shares of C$5,000,000. The Purchased Shares, together with the 11,104,400 Ordinary Shares owned by Barrick as of the date of this news release, are expected represent 12.5% of the issued and outstanding Ordinary Shares upon completion of the Financing and the private placement of Purchased Shares (assuming that the number of issued and outstanding Ordinary Shares as at the date hereof remains unchanged). Closing of the transactions is expected to occur on or before February 9, 2018, and is subject to certain conditions, including approval of the TSX Venture Exchange and the completion of the Financing on the terms described herein.In connection with the Subscription Agreement, the Company and Barrick entered into an investor rights agreement, pursuant to which Barrick, provided that it owns at least a 10% interest in Royal Road Minerals (calculated in accordance with the investor rights agreement), has the right to participate in equity financings by Royal Road Minerals in order to maintain its pro rata ownership in Royal Road Minerals at the time of any such financing or acquire up to a 12.5% ownership interest ...