Stockwatch
Rheingold closes private placement for $175,500
2017-08-28 16:13 ET - News Release
Mr. Logan Anderson reports
RHEINGOLD EXPLORATION COMPLETES FINANCING AND PROVIDES COMPANY UPDATE
Further to the news releases dated May 16, 2017, and June 30, 2017, Rheingold Exploration Corp. has completed its private placement offering of 675,000 units for total proceeds of $175,500. Each unit shall comprise one common share and one share purchase warrant, where each warrant may be exercised to purchase an additional common share of the company for two years from the date of issuance, subject to the following acceleration provision: If the closing trading price for the common shares of the issuer as traded on the Canadian Securities Exchange is equal to or greater than $1.25 per common share for 20 consecutive trading days occurring any time after the date of issuance of the warrant, then the subscriber shall have until 4 p.m. Vancouver, B.C., time of the 10th calendar day after the last day of the threshold period to exercise the share purchase warrants. The share purchase warrants shall expire on the earlier of the last day of the two-year exercise term or the accelerated expiry date. The company shall not provide notice of the threshold period or the accelerated expiry date.
All of the securities distributed under the offering are subject to a four-month hold period expiring Dec. 18, 2017.
The company announces that it is continuing to complete its non-brokered private placement equity financing, under which it intends to issue up to five million units at a price of 26 cents per unit for gross proceeds of up to $1.3-million. Each unit will be composed of one common share of the company and one common share purchase warrant exercisable for two years for an additional share at a price of 52 cents. If the company's common shares trade at or above $1.25 per share for 20 consecutive trading days, then the expiry date of the warrants will be accelerated to the date which is 10 days after such 20 consecutive trading days. The securities to be issued under the financing will be subject to a four-month hold period. There is no minimum offering amount.
The company intends to pay commissions or finders' fees on a portion of the capital raised through this private placement. Finders' fees may be payable in common shares of the company at the discretion and approval of the company in accordance with the rules and policies of the Canadian Securities Exchange. The financing is subject to applicable securities laws and regulatory approval.
Company update
The company has amended the terms of the option agreement dated May 24, 2017, between the company and BeiSur OstBaret Agency Ltd. in regard to the interest in the Bygoo tin project.
AGREED-UPON FARM-IN SCHEDULE
Farm-in payment date Farm-in payment (in Australian dollars)
On or before Aug. 4, 2017 $50,000 in cash
$50,000 in shares of Rheingold Exploration to be paid to Riverston Tin Pty. Ltd.
Aug. 15, 2017 $50,000 in cash
Aug. 31, 2017 $50,000 in cash
Sept. 30, 2017 $380,000 in cash
Nov. 30, 2017 $800,000 in cash
Jan. 31, 2018 $1.5-million in cash
The company also announces that it withdrew from its option agreement with Rubicon Minerals Corp. in regard of the Patullo property located in Ontario.
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