LNG Energy Group Corp. press release
Richmond Minerals Inc. closes flow-through financing involving MineralFields Group
TSXV - TSX Venture Exchange · Natural Gas · Oil · Canada
TORONTO, Jan. 2 /CNW/ - Richmond Minerals Inc. (RMD-TSXV) ("Richmond" or the "Corporation") is pleased to announce the closing of a non-brokered private placement of units comprised of flow-through shares and share purchase warrants and, in certain instances, non-flow-through shares and share purchase warrants. Proceeds of $701,600 (before expenses) were raised. The closing was completed on December 28th, 2006.
As to $621,500 of the private placement, the corresponding units were comprised of one flow-through common share and a warrant exercisable for one non-flow through common share. As to the remaining $80,000 of the private placement, the corresponding units were comprised of one non-flow-through common share and a warrant exercisable for one non-flow through common share. In both cases, the share purchase warrants are exercisable for a period of two years following the closing at an exercise price of $0.16 per share during the first year following the closing and $0.24 per share during the second year following the closing. A total of 8,770,000 units were issued by the Corporation at a price of $0.08 per unit.
The Corporation intends to use the proceeds raised primarily to drill the Halle property geophysical targets, and to conduct additional airborne geophysical surveys on its properties in the Grenville geological province of Quebec, as well as for other general corporate purposes.
Through an affiliate, MineralFields Group invested approximately $300,000 (or 3,750,000 units) in the Corporation through the private placement, all of which were flow-through units. 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 cash payment of 5% of the amount invested and an option exercisable for up to 10% of the units placed.
This placement is subject to final approval from the TSX Venture Exchange, but has received conditional approval from the TSX Venture Exchange.
"We are very pleased to be entering into this relationship with MineralFields Group", said Paul Ankcorn, President of Richmond Minerals Inc. "This is an important milestone in the growth of our company and we look forward to working with MineralFields Group as we develop our holdings in Ontario, Quebec and Nunavut."
About MineralFields
MineralFields Group (a division of Pathway Asset Management) is a Toronto-based mining fund with significant assents 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. Information about the MineralFields Groups is available at www.mineralfields.com
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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