Units offering settles in conjunction with credit facility negotiations
By Devika Patel
Knoxville, Tenn., Sept. 7 - Royal Standard Minerals Inc. said it completed a $1.12 million private placement of units. The company also said it has secured a credit facility financing with an international private investment group and current management.
The company sold 11.2 million units of one common share and one warrant at $0.10 per unit. Each whole warrant is exercisable at $0.10 for three years. The strike price is a 25% premium to the Sept. 3 closing share price of $0.08.
The credit facility will consist of three-year senior secured notes with an 8% per annum interest rate and warrants for $10 million to $20 million, represented by 20 to 40 units at $500,000 per unit. Also, the funding includes 500,000 warrants per unit, each exercisable at $0.10 for three years.
Proceeds will be used for development of Royal Standard's Nevada gold-silver properties and for working capital purposes.
Based in Manhattan, Nev., Royal Standard is a mineral exploration company.
| Issuer: | Royal Standard Minerals Inc.
|
| Issue: | Units of one common share and one warrant
|
| Amount: | $1.12 million
|
| Units: | 11.2 million
|
| Price: | $0.10
|
| Warrants: | One warrant per unit
|
| Warrant expiration: | Three years
|
| Warrant strike price: | $0.10
|
| Settlement date: | Sept. 7
|
| Stock symbol: | OTCBB: RYSMF
|
| Stock price: | $0.08 at close Sept. 3
|
| Market capitalization: | $5.83 million
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