TORONTO, Dec. 12 /CNW/ - Richmond Minerals Inc. (RMD-TSXV) ("Richmond" or the "Corporation") is pleased to announce a non-brokered private placement of flow-through shares. Proceeds of $1,227,012 (before expenses) were raised.
A total of 11,154,662 flow-through shares were issued by the Corporation at a price of $0.11 per share. The Corporation intends to use the proceeds raised primarily to drill exploration targets on it's Halle and Bondy Gneiss Complex in the Province of Quebec and it's Triple Lakes property in the province of Ontario.
Through an affiliate, MineralFields Group invested approximately $800,000 in the Corporation through the private placement, all of which were flow-through shares. In connection with the investment by MineralFields Group through the private placement, in addition to legal, accounting, administrative and other fees, the Corporation paid a finder's fee to Limited Market Dealer Inc. consisting of a payment of 6% of the amount invested (paid for in common shares of the Corporation), a due diligence fee of 4% (paid in shares of the Corporation) and broker warrants exercisable for up to 10% of the funds placed.
"We are very pleased to be renewing our relationship with MineralFields Group", said president, Paul Ankcorn. "This is an important milestone in the growth of Richmond Minerals, and we look forward to working with MineralFields Group as we develop our projects in the Halle and Bondy Lake in Quebec. This is our second financing in a row with MineralFields, the last one having been done in 2006".
This placement is subject to final approval from the TSX Venture Exchange, but has received conditional approval from the TSX Venture Exchange.
About MineralFields
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MineralFields Group (a division of Pathway Asset Management) is a Toronto-based mining fund with significant assets under administration that offers its tax-advantaged super flow-through limited partnerships to investors throughout Canada during most of the calendar year, as well as hard-dollar resource limited partnerships to investors throughout the world. Pathway Asset Management also specializes in the manufacturing and distribution of structured products and mutual funds. Information about MineralFields Group is available at www.mineralfields.com. First Canadian Securities(R) is active in leading resource financings (both flow-through and hard dollar) on competitive, effective and service-friendly terms, with investors both within, and outside of, MineralFields Group.
On Behalf of the Board of Directors
(signed)
Paul Ankcorn, President
Neither the TSX Venture Exchange Inc. nor any other regulatory body
accept responsibility for the adequacy or accuracy of this news release.
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