Rockridge Completes $1.5 Million Non-Brokered Private Placement Led by Palisades Goldcorp Ltd.
VANCOUVER, British Columbia, July 10, 2020 (GLOBE NEWSWIRE) -- Rockridge Resources Ltd. (TSX-V: ROCK) (“Rockridge” or the “Company”) is pleased to announce that further to its prior news release, the Company has completed a non-brokered private placement
financing for total gross proceeds of $1,500,000 (the “Private Placement”), led by Palisades Goldcorp Ltd., a strategic institutional investor. The Company has issued 15,000,000 units (the "Units")
at a price of CAD $0.10 per Unit.
Each Unit is comprised of one common share and one warrant (a “Warrant”). Each Warrant will entitle the holder to purchase one additional common share for a period of forty-two (42) months at a price of CAD $0.175 per share. In addition, the Company has paid finder's fees totaling $21,350 and issued an aggregate 213,500 finder's warrants to arm's-length parties, with each finder’s warrant bearing the same terms as the Warrants. The Private Placement is subject to final TSX Venture Exchange ("Exchange") approval and all securities issued are subject to a four-month-and-one-day hold period.
The Company intends to use the proceeds from this Private Placement for exploration activities and the upcoming drilling program at its Raney Gold Project southwest of Timmins, Ontario, as well as for general working capital purposes. The Spring 2020 drill program returned a highlight drill intercept of 28.0 g/t Au over 6.0 metres at 100 metres depth and eight of the nine drill holes returned gold mineralization over broad intervals. The broad structural corridor that hosts the mineralization potentially extends over two kilometres to the west-northwest, where a large disruption in the magnetic geophysical data, coupled with historic mapping of disseminated sulfides and quartz veining, provides a very compelling target area. The Company plans to continue testing the mineralized structure along strike and at depth to follow up on the success of the first drill program completed earlier in the year.
A portion of the Private Placement constitutes a "related party transaction" within the meaning of Exchange Policy 5.9 and Multilateral Instrument 61-101 -Protection of Minority Security Holders in Special Transactions ("MI 61-101") adopted in the Policy. The Company has relied on exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101 in respect of related party participation in the Private Placement.