/THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION
IN CANADA ONLY AND IS NOT INTENDED
FOR DISTRIBUTION TO UNITED STATES
NEWSWIRE SERVICES OR DISSEMINATION IN THE
UNITED STATES/
All monetary amounts are expressed in Canadian
Dollars, unless otherwise indicated.
TORONTO, July 14, 2020 /CNW/ - Royal Road Minerals
Limited (TSXV: RYR) ("Royal Road" or the "Company") is
pleased to announce that it has entered into an agreement with a
syndicate of underwriters led by Stifel GMP (the "Underwriters"),
pursuant to which the Underwriters will purchase, on a bought deal
basis, 27,150,000 ordinary shares (the "Shares") of the Company at
a price of C$0.37 per Shares (the
"Offering Price") for aggregate gross proceeds to the Company of
C$10,045,500 (the "Offering").
The Company has agreed to grant the Underwriters an
over-allotment option to purchase up to an additional 4,072,500
Shares at the Offering Price, exercisable in whole or in part, at
any time and from time to time on or prior to the date that is 30
days following the closing of the Offering to cover
over-allotments, if any, and for market stabilization purposes. If
this option is exercised in full, an additional C$1,506,825 in gross proceeds will be raised
pursuant to the Offering and the aggregate gross proceeds of the
Offering will be C$11,552,325.
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 will be offered by way of a short form prospectus to
be filed in all provinces of Canada, except Québec. The Shares will also be
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
provided that no prospectus filing or comparable obligation
arises.
The Offering is scheduled to close on or about August 4, 2020 and is subject to certain
conditions including, but not limited to, the receipt of all
necessary approvals including the approval of the TSX Venture
Exchange and the securities regulatory authorities.
This press release shall not constitute an offer to sell or
the solicitation of an offer to buy nor shall there be any sale of
the securities in any state in which such offer, solicitation or
sale would be unlawful. The securities being offered have not been,
nor will they be, registered under the United States Securities Act
of 1933, as amended (the "1933 Act") and may not be offered or sold
in the United States absent
registration or an applicable exemption from the registration
requirements of the 1933 Act, as amended, and application state
securities laws.
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 press release.
Cautionary Statement Regarding Forward-Looking
Information
This news release may contain certain information that
constitutes forward-looking statements. Forward-looking statements
are frequently characterized by words such as "plan," "expect,"
"project," "intend," "believe," "anticipate" and other similar
words, or statements that certain events or conditions "may" or
"will" occur and include statements regarding the use of proceeds
from the private placement transactions. Forward-looking statements
are based on the opinions and estimates of management at the date
the statements are made, and are subject to a variety of risks and
uncertainties and other factors that could cause actual events or
results to differ materially from those projected in the
forward-looking statements. These factors include the inherent
risks involved in financing transactions, exploration and
development of mineral properties, the hiring and retention of
directors and officers, the uncertainties involved in interpreting
drilling results and other geological data, fluctuating metal
prices, permitting and licensing and other factors described above
and in the Company's most recent annual information form under the
heading "Risk Factors", which has been filed electronically by
means of the Canadian Securities Administrators' website located
at www.sedar.com. The Company disclaims any obligation
to update or revise any forward-looking statements if circumstances
or management's estimates or opinions should change. The reader is
cautioned not to place undue reliance on forward-looking
statements.
SOURCE Royal Road Minerals Limited