Richmond Energy Corp.

June 20, 2008 11:01 ET

Richmond Energy Corp. Announces the Filing of the Final Prospectus Relating to Its Initial Public Offering of Common Shares

TORONTO, ONTARIO--(Marketwire - June 20, 2008) -

NOT FOR DISSEMINATION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Richmond Energy Corp. ("Richmond" or the "Corporation") announced today that it filed the final prospectus relating to its initial public offering of common shares and has obtained a receipt therefor from the Ontario Securities Commission. The offering consists of a minimum of 11,500,000 common shares and a maximum of 13,500,000 common shares at a price of $0.15 per share to raise gross proceeds of a minimum of $1,725,000 and a maximum of $2,025,000. D&D Securities Company has agreed to act as agent in connection with the offering.

In consideration for acting as agent in connection with the Offering, D&D Securities Company will receive a cash commission of 7% of the gross proceeds of the offering which will be paid on the closing of the offering. In addition to the cash commission, the Corporation has agreed to grant to D&D Securities Company an irrevocable and non-transferable option to purchase that number of common shares of the Corporation equal to 7% of the number of common shares sold pursuant to the offering at a price of $0.15 per common share for a period of eighteen months from the closing of the offering.

The net proceeds of the offering will be used by the Corporation to complete the recommended work program on the Yukon Olympic Property budgeted for approximately $609,000, to complete additional work, including trenching, ground sampling and identification of drill targets, on the North Nonacho Property, to search for and acquire additional mineral properties, including the eight uranium concessions in the Republic of Niger which the Corporation has made formal application for, and for other specified corporate purposes.

This press release is not an offer to sell or a solicitation of an offer to buy the securities, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to qualification or registration under the securities laws of such jurisdiction. The common shares being sold pursuant to the offering have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons except in certain transactions exempt from the registration requirements of the United States Securities Act of 1933, as amended.

About Richmond Energy Corp.

Richmond is a reporting issuer in Ontario with an experienced management team engaged in the acquisition, exploration and development of properties for the mining of precious and base metals and uranium in Canada and West Africa (Republic of Niger). The principal property of Richmond is the Yukon Olympic Property, comprised of 272 quartz mining claims in the Dawson Mining Division, Yukon Territory, which is prospective for iron oxide, copper and gold mineralization and in which Richmond holds an option to acquire up to a 65% interest. The Corporation also holds an option to acquire a 100% in the North Nonacho Property comprised of two mining claims covering 60 units in the vicinity of Nonacho Lake, Northwest Territories. In addition, the Corporation has made formal application for eight uranium concessions with the Niger Ministry of Mines and Energy, but no concessions have been granted as of the date of this press release.

Forward-Looking Statements

Certain statements in this press release may constitute "forward-looking" statements which involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements of Richmond or the industry in which it operates to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. When used in this press release, the words "estimate", "believe", "anticipate", "intend", "expect", "plan", "may", "should", "will", the negative thereof or other variations thereon or comparable terminology are intended to identify forward-looking statements. Such statements reflect the current expectations of the management of Richmond with respect to future events based on currently available information and are subject to risks and uncertainties that could cause actual results, performance or achievements to differ materially from those expressed or implied by those forward-looking statements. These risks and uncertainties are detailed from time to time, including, without limitation, under the heading "Risk Factors", in Richmond's prospectus and in other continuous disclosure documents that will be filed by Richmond from time to time with the Ontario Securities Commissions which are available at www.sedar.com and to which readers of this press release are referred for additional information concerning Richmond, its prospects and the risks and uncertainties relating to Richmond and its prospects. New risk factors may arise from time to time and it is not possible for management to predict all of those risk factors or the extent to which any factor or combination of factors may cause actual results, performance and achievements of Richmond to be materially different from those contained in forward-looking statements. Although the forward-looking statements contained in this press release are based upon what management believes to be reasonable assumptions, Richmond cannot assure investors that actual results will be consistent with these forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results.

The forward-looking information contained in this press release is current only as of the date of the press release. Richmond does not undertake or assume any obligation to release publicly any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

No securities commission or regulatory authority has approved or disapproved the contents of this press release. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this press release.

Contact Information

  • Richmond Energy Corp.
    Kabir Ahmed
    Chairman, President and Chief Executive Officer and Director
    (416) 941-9663
    (416) 946-1951 (FAX)