VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug. 16, 2013) - RT Minerals Corp. ("RTM" / the "Company") (TSX VENTURE:RTM) wishes to announce the following:
- The Company is proposing to consolidate its share capital on a 12 for 1 basis (the "Consolidation"), such proposed Consolidation to be presented at a special general meeting of shareholders of the Company to be held within the next 60 days.
- It has reached agreement (the "LSG Agreement") with Lake Shore Gold Corp. ("LSG") to settle approximately $241,231 of debt owing to LSG by the transfer of the Company's interest in the Meunier 144 mineral property near Timmins, Ontario to LSG. Under the terms of the LSG Agreement, LSG has agreed to vote the shares of the Company held by them in favour of the Consolidation. The LSG Agreement also provided for LSG to grant the Company certain rights in respect of a sale of shares of the Company held by LSG.
- It has reached the principal terms of a settlement with certain subscribers to the Company's December 2010 Private Placement to settle the issues arising from the estimated sundry shortfall of certain flow through tax credits. Under the terms of the settlement the Company would pay the subscribers the amount of $116,245.
- It proposes to undertake a post-Consolidation Private Placement (the "Private Placement) of up to 7,000,000 Flow Through Units (the "FT Units") and up to a further 7,000,000 Non-Flow Through Units (the "NFT Units"). Each FT Unit and NFT Unit will be priced at $0.05 and will be comprised of one common share and one share purchase warrant having terms of two or five years and an exercise price of $0.05. The proceeds from the sale of the FT Units will be used for exploration activity on the Company's mineral properties while the proceeds from the sale of the NFT Units will be used to settle outstanding indebtedness and for general working capital.
- It has settled the principal terms of an Agreement (the "Property Agreement") with an arms length vendor to acquire the Matachewan gold property located several kilometers north east of the Young-Davidson gold mine in northern Ontario. Under the terms of the Property Agreement the Company would acquire a 100% interest in the Matachewan gold property and as consideration would issue 1,000,000 post Consolidation shares of the Company to the vendor.
- Contemporaneously with the consolidation of the Company's shares RTM has agreed to settle approximately $15,000 in debt for shares of RTM with a non-arms length creditor. A total of 300,000 post consolidated shares of RTM are proposed to be issued to this creditor to settle this debt.
The transactions detailed herein remain subject to the execution of definitive agreements and receipt of all requisite shareholder and regulatory approvals.
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.