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TORONTO, Aug 29, 2011 (MARKETWIRE via COMTEX News Network) --
Royal Standard Minerals Inc. (OTCBB: RYSMF) (the "Company" or "Royal Standard") is pleased to announce that, further to the disclosure provided in its press release of June 30, 2011, its subsidiary Manhattan Mining Co. ("Manhattan") has now amended its existing senior secured bridge loan (the "Bridge Loan") with Waterton Global Value, L.P. ("Waterton") such that the Bridge Loan has been transitioned into a more permanent senior secured gold stream debt facility (the "Gold Stream Facility") amongst the parties.
Under the Gold Stream Facility, Waterton will make US$8,000,000 (the "Principal Amount") available to the Company. The Principal Amount will be payable by the Company to Waterton in monthly payments commencing in August 2012 and ending in August 2013. Under the Gold Stream Facility, each monthly repayment of the Principal Amount will be made by the delivery by the Company to Waterton of gold bullion ounces where the number of ounces to be delivered shall be based on the then current spot price of gold less an applicable discount or by the payment of the cash equivalent of such number of ounces. The Principal Amount will accrue interest at 9.0% per annum. The Gold Stream Facility is secured by, amongst other items, Manhattan's real property assets in Nevada. The Company has agreed to guarantee Manhattan's obligations under the Gold Stream Facility.
The Company is pleased to announce that it plans to use the proceeds of the Gold Stream Facility to continue to pursue an underground drilling program at the Goldwedge Mine as a part of a broader program to better develop the mine plan and to bring the Goldwedge Mine and the mill located on such property into commercial production.
Roland M. Larsen, Chief Executive Officer of the Company, stated, "We appreciate the support by Waterton and we are confident that our mutual efforts will provide the means to achieve the Company's growth objectives over the next 12 months and beyond".
Cheryl Brandon, Portfolio Manager at Waterton, stated, "We look forward to continue working with Royal Standard to provide the required capital to commission the Goldwedge Mine. In addition, we are pleased to have the opportunity to finance future exploration and development programs for the Company's prospective portfolio of Nevada based assets."
In connection with the Gold Stream Facility, the Company has agreed to pay Waterton a structuring fee, and has also provided Waterton with certain royalty interests relating to its Nevada properties. The Company and Waterton have also entered into certain gold purchase agreements pursuant to which Waterton has agreed to purchase the Company's production.
About Royal Standard
Royal Standard is a natural resource exploration and development company, with its principal mining assets being in Nye County, Nevada. For further information about this release, please contact Mr. Rich Kaiser, Investor Relations, 800-631-8127,
www.royalstandardminerals.com.
Disclaimer for Forward-Looking Information
This news release contains forward-looking statements, including about completion of the financing facility and current expectations on the timing of the commencement of further project development. These forward-looking statements entail various risks and uncertainties that could cause actual results to differ materially from those reflected in these forward-looking statements. Such statements are based on current expectations, are subject to a number of uncertainties and risks, and actual results may differ materially. These uncertainties and risks include, but are not limited to, the strength of the Canadian and US economy; the price of gold; operational, funding, and liquidity risks; the degree to which mineral resource estimates are reflective of actual mineral resources; the degree to which factors which would make a mineral deposit commercially viable are present; the risks and hazards associated with underground operations. Risks and uncertainties are more fully discussed in the company's disclosure materials filed with the securities regulatory authorities in Canada and the United States and available at
www.sedar.com and
www.sec.gov and readers are urged to read these materials. Royal Standard assumes no obligation to update any forward-looking statement or to update the reasons why actual results could differ from such statements unless required by law.
Contact: Roland Larsen (775) 487-2454 or Rich Kaiser 757-306-6090
SOURCE: Royal Standard Minerals
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