QUESNEL, BC, Sept. 17 /PRNewswire-FirstCall/ -- Richfield Ventures Corp. ("Richfield" or the "Company") (TSX-V: RVC) is pleased to announce that, further to its press release of September 3, 2010, it has completed its non-brokered private placement (the "Offering") for gross proceeds of $14.625 million, placed primarily with institutional investors.
The Company intends to spend the net proceeds primarily for its Blackwater project and regional exploration in the Nechako Plateau. Peter Bernier, President and CEO of Richfield, commented: "We are pleased to have completed this financing. We are confident that Richfield will increase shareholder value by doubling its drill program to 50,000 metres - allowing for a more comprehensive resource estimate and a thorough understanding of the deposit and its geology."
Pursuant to the Offering, the Company issued a total of 7,500,000 units ("Units") at a price of $1.95 per Unit. Each Unit consists of one common share and one-half of one share purchase warrant (a "Warrant") of the Company. Each Warrant entitles the holder to purchase one common share at a price of $2.50 per share until March 17, 2012, subject to abridgement on the occurrence of a trigger event. A trigger event shall occur if on any day during the exercise period of the warrants the twenty-day volume weighted average trading price of the Company's common shares on the TSX Venture Exchange exceeds $2.75 per share. The occurrence of a trigger event entitles the Company, on written notice to the holders, to abridge the exercise period to an expiry date which is 30 days following notice.
The Company paid to the finders who assisted in placing subscription amounts in the Offering a fee equal to 5.0% of the aggregate proceeds from the sale of the Units, which consisted of an aggregate of $243,243 in cash and an aggregate of 250,260 Units, which were issued in lieu of a cash fee and at the election of the finders. The Company also issued to the finders an aggregate of 450,000 common share purchase warrants (the "Finder Warrants"), equal to 6.0% of the Units sold pursuant to the Offering. Each Finder Warrant entitles the holder to purchase one common share at a price of $2.00 per share until March 17, 2012. All securities issued under the Offering are subject to a four month hold period ending January 18, 2011.
Richfield Ventures Corp. is a public mineral exploration company trading on the TSX Venture Exchange under the symbol RVC. Richfield has been actively acquiring and exploring mineral tenures in the Quesnel Trough and Nechako Plateau regions of British Columbia.
The units have not been registered under the United States Securities Act of 1933, as amended (US Securities Act), and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This news release does not constitute an offer to sell or a solicitation of an offer to buy such units in any jurisdiction in which such an offer or sale would be unlawful.
Certain statements in this press release may be considered forward-looking information, including those relating to the "expectations", "intentions" or "plans" of the Company. Such information involves known and unknown risks, uncertainties and other factors -- including the approvals of regulators, availability of funds, the results of financing and exploration activities, the interpretation of drilling results and other geological data, project cost overruns or unanticipated costs and expenses and other risks identified by the Company in its public securities filings -- that may cause actual events to differ materially from current expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Neither 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.
Richfield Ventures Corp.
CONTACT: Peter Bernier, President & CEO, Richfield Ventures Corp., Tel:
(877) 992.6644, Email: pete@RichfieldVentures.ca; Susanne Bonn, CFO, Richfield
Ventures Corp., Tel: (877) 992.6644, Email: susanne@RichfieldVentures.ca
