Mr. Peter Main reports

RIZAL CLOSES ON FIRST TRANCHE OF PRIVATE PLACEMENT OF CONVERTIBLE PROMISSORY NOTES

Rizal Resources Corp. (formerly Cadan Resources Corp.) has closed the first tranche of its previously announced brokered private placement financing of convertible promissory notes. The company has closed on $1.9-million (Australian) of its proposed raise of up to $3.0-million (Australian) of notes.

The notes capitalize interest at a rate of 12 per cent per annum and have a maturity date of Dec. 31, 2017. The principal amount and interest of the notes will be convertible into common shares of Rizal and warrants of Rizal to purchase common shares, as detailed in the release of Dec. 23, 2016. The private placement has been conditionally approved by the TSX Venture Exchange. The second tranche will be proceeding and is expected to close within 30 days under TSX-V requirements.

The company has engaged Azure Capital Ltd. to act as corporate adviser in relation to the private placement and to investigate opportunities to recapitalize the company in the near term. Agency fees of about 5 per cent of the gross proceeds of the private placement will be paid to the agent.