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Royal Road Minerals set for C$5 million financing for exploration in Colombia and Nicaragua

Pollitt & Co Inc will act as the lead agent to offer up to around 22.7 million shares at C$0.22 each, for gross proceeds of up to C$5 million

Royal Road Minerals -
The placement is expected to close on or around November 1

Royal Road Minerals Ltd (CVE:RYR) (OTCMKTS:RRDMF) unveiled plans to raise up to C$5 million in a private placement for exploration in Colombia and Nicaragua.

The funds will also be used for working capital, the firm said in a statement.

Pollitt & Co Inc will act as the lead agent to offer up to around 22.7 million shares at C$0.22 each, for gross proceeds of up to C$5 million.

Mining major Agnico Eagle Mines Limited (NYSE:AEM) will take part in the offering following the investor rights agreement, reported in May, whereby it has the right to participate in Royal Road financings to maintain its pro-rata ownership, provided that it maintains at least a 9.5% stake.

The placement is expected to close on or around November 1 this year. It is subject to the necessary regulatory approvals, including from the TSX Venture Exchange

In consideration for its services, Pollitt will receive cash equal to 6% of the gross proceeds and Royal Road will issue it warrants to buy shares equal to 6% of shares issued in the placement.

Agnico Eagle has produced precious metals since 1957. Its operating mines are in Canada, Finland and Mexico, with exploration and development activities in each of these countries as well as in the USA and Sweden.

Contact the author at giles@proactiveinvestors.com

Quick facts: Royal Road Minerals Ltd

Price: 0.27 CAD

TSX-V:RYR
Market: TSX-V
Market Cap: $70.39 m
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