Royal Standard Minerals, Inc. (RYSMF) Has Secured a Credit Facility and Completes a Private Placement Financing
Sep 7, 2010 8:35:00 AM
V -- (MARKET WIRE) -- 09/07/10 -- (OTCBB:RYSMF) announces today that it has secured a financing, with aninternational private investment group and current management of theCompany to include a "Credit Facility" that will consist of seniorsecured notes with an 8% per annum interest rate and warrants for$10-$20 million, representing 20-40 units at $500,000 per unit. Also,the funding includes 500,000 warrants per unit priced @
.10 perwarrant. The term of the notes and warrants will be three years andinclude interest only payments during the first year of the notescommencing six months after the closing date. During years 2 and 3 therepayment of the notes will include equal monthly principal andinterest payments until the notes are repaid. The notes will be securedby RYSMF's properties and physical assets. The documentation andrelease of funds for the initial funding of the credit facility isexpected to be completed on or about October 15, 2010.
Inconjunction with the credit facility as part of a separate transactionthe Company has closed a $1.2 million private placement financing thatincludes 11.2 million units at
.10/ unit. Each unit will consist ofone common share and one common share purchase warrant priced at
.10per warrant of the Company. Each Warrant is exercisable into one commonshare in the capital of the "Common Share") for a period of three years from the date of the closing.
The use of proceeds will be to continue with the development of RYSMF's Nevada gold-silver properties and for working capital purposes. The Company may be subject to a structuring fee in connection with this financing.
RSM is a natural resource exploration and development company, www.royalstandardminerals.com
For further information contact Mr. Roland Larsen, (775) 487-2454 and/or Mr. Rich Kaiser, Investor Relations, 800-631-8127.
cautions that statements made in this press release
and other forward looking statements made on behalf of the Company may be
affected by such other factors including, but not limited to, volatility of
mineral prices, product demand, market competition, imprecision of mineral
estimates, and other risks detailed herein and from time to time in the
filings of the Company, C.U.S.I.P. #
780919106
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Contact:
Roland Larsen
775-487-2452
Or
Rich Kaiser
800-631-8127