VANCOUVER, BC / ACCESSWIRE / June 7, 2018 / Roughrider Exploration Limited (TSX-V: REL) ("Roughrider"
or the "Company") – is pleased to announce that it has signed Option Agreements with Eagle Plains Resources Ltd. ("Eagle
Plains") to acquire up to an 80% interest in the Brownell Lake (base metals) and Olsen (gold) exploration properties located near
La Ronge Saskatchewan. No shares will be issued in connection with the option agreements. The terms of the option agreements are as
follows.
Brownell Lake Option Agreement
Under the terms of the Brownell Lake Option Agreement, Eagle Plains will grant the Company the right to acquire up to an 80%
interest in and to Brownell Lake (subject to the 2% NSR ) by making aggregate cash payments of up to $2,500,000 and incurring
exploration expenditures of up to $7,000,000 over a period of up to four years as follows:
- To earn an initial 60% interest:
Aggregate cash payments of $500,000 according to the following schedule:
- $25,000 on or before March 31, 2019
- $50,000 ($75,000 total) on or before March 31, 2020
- $125,000 ($200,000 total) on or before March 31, 2021
- $300,000 ($500,000 total) on or before March 31, 2022
- Aggregate exploration expenditures of $3,000,000 according to the following schedule
- $100,000 on or before December 31, 2018
- $300,000 ($400,000 total) on or before December 31, 2019
- $600,000 ($1,000,000 total) on or before December 31, 2020
-$2,000,000 ($3,000,000 total) on or before December 31, 2021
- To earn an additional 20% interest (total 80%):
- Additional $2,000,000 cash payment $2,500,000 total) and $4,000,000 exploration expenditures ($7,000,000 total) within 2
years of the date of election to exercise the initial option
Olsen Option Agreement
Under the terms of the Olsen Agreement, Eagle Plains will grant the Company the right to acquire up to an 80% interest in and to
the Olsen Property (subject to the 2% NSR ) by making aggregate cash payments of up to $2,500,000 and incurring exploration
expenditures of up to $7,000,000 over a period of up to four years as follows:
- To earn an initial 60% interest:
Aggregate cash payments of $500,000 according to the following schedule:
- $25,000 on or before March 31, 2019
- $50,000 ($75,000 total) on or before March 31, 2020
- $125,000 ($200,000 total) on or before March 31, 2021
- $300,000 ($500,000 total) on or before March 31, 2022
Aggregate exploration expenditures of $3,000,000 according to the following schedule
- $100,000 on or before December 31, 2018
- $300,000 ($400,000 total) on or before December 31, 2019
- $600,000 ($1,000,000 total) on or before December 31, 2020
-$2,000,000 ($3,000,000 total) on or before December 31, 2021
- To earn an additional 20% interest (total 80%):
- Additional $2,000,000 cash payment $2,500,000 total) and $4,000,000 exploration expenditures ($7,000,000 total) within 2
years of the date of election to exercise the initial option
The Company is pleased to be adding to its exploration portfolio in Saskatchewan.
Proposed 5:1 Consolidation
The Company also reports it proposes to consolidate the Company's common shares on the basis of one (1) post-consolidation
common share for every five (5) pre-consolidation common shares. In accordance with current TSXV policies, shareholder approval
will not be required for the proposed consolidation. The proposed consolidation has been approved by the Company's board of
directors.
Management believes the share consolidation will provide the Company with greater flexibility in its ability to finance the
Company and advance its projects. The Company currently has no plans to change its name in connection with the proposed share
consolidation. The share consolidation will be subject to acceptance for filing by the TSX Venture Exchange.
The Company currently has an aggregate of 47,082,757 common shares issued and outstanding. It is anticipated that upon
completion of the share consolidation, there will be approximately 9,416,551 common shares issued and outstanding, subject to any
existing stock options being exercised prior to the effective date of the consolidation.
The Company currently has outstanding stock options exercisable to purchase an aggregate of 2,400,000 common shares at exercise
prices ranging from $0.07 to $0.22. Upon completion of the share consolidation, there would be stock options outstanding to
purchase an aggregate of 480,000 common shares at exercise prices ranging from $0.35 to $1.10, based on the current number of
outstanding stock options.
The Company currently has outstanding warrants exercisable to purchase an aggregate of 5,305,880 common shares an exercise price
of $0.10. Upon completion of the share consolidation, there would be warrants outstanding to purchase an aggregate of 1,061,176
common shares at an exercise price of $0.50, based on the current number of outstanding warrants.
The effective date of the consolidation will be disclosed in a subsequent news release. Notwithstanding the foregoing, the board
of directors may, at its discretion, determine not to effect the consolidation.
About Roughrider Exploration Limited
Roughrider and its partner Kivalliq Energy are exploring the Genesis uranium project located in the Wollaston-Mudjatik
geological trend extending northeast from Saskatchewan's Athabasca Basin. In addition, Roughrider has acquired options on the
Brownell Lake and Olsen property options near La Ronge Saskatchewan and the Silver Ace and Sterling projects in central British
Columbia.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX
Venture Exchange) accept responsibility for the adequacy or accuracy of this release.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
Certain information contained or
incorporated by reference in this press release, including any information as to our strategy, projects, plans or future financial
or operating performance, constitutes "forward-looking statements." All statements, other than statements of historical fact, are
to be considered forward-looking statements. Forward-looking statements are necessarily based on a number of estimates and
assumptions that, while considered reasonable by the company, are inherently subject to significant business, economic, geological
and competitive uncertainties and contingencies. Although the Company believes the expectations expressed in such forward-looking
statements are based on reasonable assumptions, such statements are not guarantees of future performance. Known and unknown factors
could cause actual results to differ materially from those projected in the forward-looking statements. Such factors include but
are not limited to: fluctuations in market prices, exploration and exploitation successes, continued availability of capital and
financing, changes in national and local government legislation, taxation, controls, regulations, expropriation or nationalization
of property and general political, economic, market or business conditions. Many of these uncertainties and contingencies can
affect our actual results and could cause actual results to differ materially from those expressed or implied in any
forward-looking statements made by, or on behalf of, us. Readers are cautioned that forward-looking statements are not guarantees
of future performance and, therefore, readers are advised to rely on their own evaluation of such uncertainties. All of the
forward-looking statements made in this press release, or incorporated by reference, are qualified by these cautionary statements.
We do not assume any obligation to update any forward-looking statements.
CONTACT:
Scott Gibson, Chief Executive Officer
604-697‐0028
SOURCE: Roughrider Exploration Limited
