08:53:05 EDT Fri 10 Jul 2020
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Royal Road Minerals Ltd
Symbol RYR
Shares Issued 215,831,696
Close 2019-10-21 C$ 0.235
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Royal Road arranges $5-million private placement

2019-10-21 12:51 ET - News Release

Dr. Tim Coughlin reports


Royal Road Minerals Ltd. has entered into an agreement with Pollitt & Co. Inc., whereby the company has engaged Pollitt as its lead agent in connection with a proposed private placement offering of up to 22,727,272 ordinary shares of the company at a price of 22 cents per share for gross proceeds to the company of up to $5-million, to be conducted on a best efforts agency basis.

Pursuant to the investor rights agreement between the company and Agnico Eagle Mines Ltd. dated May 23, 2019, Agnico has provided notice to the company indicating that it intends to purchase such number of shares in the offering that will result in Agnico maintaining its pro rata ownership interest in the company.

The net proceeds of the offering are intended to be used by the company to help finance its planned exploration operations in Colombia and Nicaragua and for general working capital purposes.

The closing of the offering is expected to occur on or about Nov. 1, 2019, and is subject to the receipt of necessary regulatory approvals, including the approval of the TSX Venture Exchange. All securities issued in connection with the offering will be subject to a statutory four-month hold period.

In consideration for its services, Pollitt will receive a cash commission equal to 6 per cent of the gross proceeds of the offering. As additional compensation, the company will issue to Pollitt warrants to purchase a number of shares equal to 6.0 per cent of the number of shares issued under the offering at a price per share equal to the issue price.

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