Richview Resources Inc.

Richview Resources Inc.

November 15, 2005 09:35 ET

Richview Resources Inc. Press Release

TORONTO, ONTARIO--(CCNMatthews - Nov. 15, 2005) - Richview Resources Inc. ("Richview") is pleased to announce that it has reached an agreement with its joint venture partner PGM Ventures Corporation ("PGM") to acquire the balance of the Thierry Mine (the "Property") located near Pickle Lake, Patricia Mining Division, Ontario. Richview and PGM each currently own a 51% and 49% beneficial interest, respectively, in the Property.

Pursuant to the terms of the agreement, Richview has agreed to issue to PGM 5.7 million units in the capital of Richview, each unit consisting of one common share and one-half share purchase warrant. Each whole warrant shall entitle PGM to acquire an additional common share of Richview at a price of $0.90 for a period of two years from the date of completion of the transaction. Upon completion of the acquisition, Richview will own a 100% beneficial interest in the Property. Completion of this transaction is subject to completion of formal transaction documentation and approval of the TSX Venture Exchange.

Richview and PGM collectively hold 100% beneficial ownership of the Property. Richview and PGM are currently negotiating with the relevant provincial government authorities to resolve certain outstanding issues affecting the transfer of legal title of the Property which is still registered to a previous owner. Richview expects these issues to be resolved shortly. Upon resolution of these issues and completion of the sale of the balance of PGM's interest in the Property, 100% of the legal and beneficial title to the Property will be transferred to Richview.

Richview completed a drill program on the Property in March 2005 and is currently conducting some fill-in drilling. In addition, environmental studies and metallurgical studies managed by the project engineer and Richview's consultant, SRK Consulting, are now being compiled. Results and interpretation of this work including a resource estimate are expected to be available in the next 30 days.

Richview and PGM have also reached an agreement regarding the conversion of a loan in the principal amount of $700,000 currently owed by PGM to Richview. Pursuant to the terms of the agreement, PGM will issue to Richview units of PGM at an issue price of $0.65 per unit. The number of units will be equal to the principal amount of the loan plus all accrued interest divided by $0.65. Each unit will consist of one common shares and one common share purchase warrant, each warrant entitling Richview to acquire one additional common share of PGM at a price of $0.75 for a period of two years. Completion of this transaction is subject to completion of formal transaction documentation and approval of the TSX Venture Exchange.

Some of the statements contained in this release are forward-looking statements, such as estimates and statements that describe Richview's future plans, objectives or goals, including words to the effect that Richview or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements.

Issued Capital: 58,077,350 Common Shares

Contact Information

  • Richview Resources Inc.
    Michael Newbury
    Chief Executive Officer
    (416) 703-5435