March 16, 2016 – Toronto, Ontario: Further to its press release dated 15th March 2016, Royal Road Minerals Limited (TSXV:RYR) (“Royal Road Minerals” or the “Company”), a gold focused mineral exploration and development company, is pleased to announce share purchase warrant terms related with its intended non-brokered private placement (the “Offering”). The Offering will comprise of up to 20,000,000 units (each a "Unit") of the Company at a purchase price of C$0.05 per Unit for aggregate gross proceeds of up to C$1.0 million. Each Unit will be comprised of one ordinary share of the Company and one-half of one ordinary share purchase warrant (each whole warrant a "Warrant"). Each Warrant will entitle the holder thereof to acquire one ordinary share of the Company at a price of C$0.10 for a period of 24 months from the date of issuance.
“Proceeds of this capital raising will be used for initial drill-testing of the Company’s high-grade La Golondrina gold project in the La Llanada gold district of southern Colombia and to finance further license acquisition initiatives within the region” said Tim Coughlin, Royal Road Minerals’ President and CEO “At Golondrina, 60 saw-cut channel samples from four horizontal levels of active underground development extending over an approximately 40 meter vertical interval average 31.1 g/t gold over highly variable but average vein widths of 0.3 meters. In some cases, vein zones of more than one vein with smaller linking veinlets and vein stockwork zones extend from and into the floor and roof of underground development and over vertical widths exceeding 2 meters. Where sampled, vein zones have returned best results of 21.7g/t gold over 2.2 meters and 11.8g/t gold over 2 meters and vein stockwork zones have returned 43.0g/t gold over 0.7 meters and 12.9g/t gold over 1.25 meters. We now need to drill test and continuously sample this 40m interval of underground development from surface to identify the stack frequency of veins and vein zones and extend the mineralization to further collapsed tunnels at depth and laterally along the La Golondrina ridge. We are also working on further exploration and mining license acquisition initiatives within the region in order to secure a significant and prospective land position.”
The Offering is expected to close on or about April 8, 2016. Closing of the Offering is subject to the approval of the TSX Venture Exchange. All the securities issued under the Offering are subject to resale restrictions under applicable securities laws.
The securities to be issued under the Offering have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities laws, and accordingly, may not be offered or sold within the United States except in compliance with the registration requirements of the U.S. Securities Act and applicable state securities requirements or pursuant to exemptions therefrom. This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the Company's securities in the United States.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
The information in this news release was compiled, reviewed and verified by Dr. Tim Coughlin, BSc (Geology), MSc (Exploration and Mining), PhD (Structural Geology), FAusIMM, President and CEO of Royal Road Minerals Ltd and a qualified person as defined by National Instrument 43-101. Royal Road Minerals employees are instructed to follow standard operating and quality assurance procedures intended to ensure that all sampling techniques and sample results meet international reporting standards. Rock faces for underground channel sampling are first washed with a high-pressure hose and then channel sample locations are clearly marked and numbered using spray paint. Channels are cut with dual or single blade electric rock-saws to a depth of 3-5cm and over a channel width of 10cm. Individual sample lengths do not exceed 1 meter. Individual quartz veins and in some cases vein zones may be cut longitudinally along the vein wall to ensure the collection of a statistically significant amount of vein material. Channel material is extracted using a hammer and chisel and bagged for analysis on location. All assay work for released results is carried out by internationally certified Actalabs in Colombia and Canada. All samples are analyzed by fire assay for gold and high-grade samples may be assayed by gravimetric fire assay and metallic screen (150#). Multielement analysis by ICP-MS is also conducted. More information can be found on Royal Road Minerals web site at www.royalroadminerals.com
This news release may contain certain information that constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as “plan,” “expect,” “project,” “intend,” “believe,” “anticipate” and other similar words, or statements that certain events or conditions “may” or “will” occur and include statements regarding the Option Agreement. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the inherent risks involved in the hiring and retention of directors and officers, exploration and development of mineral properties, mine site planning and development, the uncertainties involved in interpreting drilling results and other geological data, fluctuating metal prices, permitting and licensing and other factors described above and in the Company’s most recent annual information form under the heading “Risk Factors”, which has been filed electronically by means of the Canadian Securities Administrators’ website located at www.sedar.com. The Company disclaims any obligation to update or revise any forward-looking statements if circumstances or management’s estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.
For further information please contact:
Dr. Tim Coughlin President and Chief Executive Officer USA-Canada toll free 1800 6389205 +44 (0)1534 887166 +44 (0)7797 742800 firstname.lastname@example.org