pcNewsWire – Rathdowney Resources Ltd. (TSX-V: RTH) intends to complete a private placement of up to approximately 3,000,000 units at $0.19 per unit for proceeds of up to approximately $570,000
Proceeds will be used to advance Polish permitting activities and further refine mining engineering work to progress the company’s Olza zinc-lead-silver project towards feasibility and completion of permit licensing, as well as for general corporate working capital purposes.
Rathdowney announces private placement of up to $570,000
VANCOUVER, June 9, 2017 /CNW/ – Rathdowney Resources Ltd. (“Rathdowney” or the “Company”) (TSXV: RTH) announces that it plans to complete a private placement of up to approximately 3,000,000 (“Units”) of the Company at a price of $0.19 per Unit (the “Issue Price”) for proceeds of up to approximately $570,000 (the “Offering”).
Each Unit shall consist of one common share in the capital of the Company (a “Share”) and one common share purchase warrant (a “Warrant”). Each Warrant shall entitle the holder to purchase one additional Share (a “Warrant Share”) at a price of $0.24 per Warrant Share for a period of two years from the date of closing of the Offering. Finders fees of up to 6% may be payable on a portion of the placement.
The Units, Shares and Warrant Shares will be subject to applicable resale restrictions, including a four month hold period from date of closing of the Offering under applicable Canadian securities laws. Completion of the Offering is subject to regulatory approval, including approval of the TSX Venture Exchange.
Proceeds will be used to advance Polish permitting activities and further refine mining engineering work to progress the Company’s Olza zinc-lead-silver project towards feasibility and completion of permit licensing, as well as for general corporate working capital purposes.
About Rathdowney and Project Olza
Rathdowney Resources Ltd. is focused on advancing Project Olza through permitting and into production. Project Olza is located in the Upper Silesian Mining District of southwestern Poland, a world-class region of Mississippi Valley-type zinc-lead deposits with well-developed mining infrastructure. A railway line through the Olza project-area provides direct access to smelters in Poland, elsewhere in Europe and to tidewater to reach off-shore facilities.
Strong potential financial returns are indicated for a 6,000 tpd low-cost, bulk-tonnage underground operation and conventional treatment facility, producing two clean, low-iron, marketable concentrates (Preliminary Economic Assessment)1. In addition, extensive property-wide historical drilling by the Polish State as well as recent drilling by Rathdowney have shown excellent potential to expand mineral resources to support a long-life mine.
David Copeland, PEng., Chairman of Rathdowney and a qualified person as defined under NI43-101, has reviewed the technical information in this release.
On behalf of the Board of Directors
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.