Romios Gold Resources Inc.

Romios Gold Resources Inc.

March 07, 2005 08:30 ET

Romios Announces Completion Of Financings And Debt Settlement


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: ROMIOS GOLD RESOURCES INC.

TSX VENTURE SYMBOL: RG

MARCH 7, 2005 - 08:30 ET

Romios Announces Completion Of Financings And Debt
Settlement

TORONTO, ONTARIO--(CCNMatthews - March 7, 2005) - Romios Gold Resources
Inc. ("Romios") (TSX VENTURE:RG) is pleased to announce that on March 1,
2005 it completed a brokered private placement consisting of 3,368,331
flow-through common shares priced at $0.15 per share for gross proceeds
of $505,249.65 and 2,000,000 working capital units priced at $0.15 per
unit for gross proceeds of $300,000. Each working capital unit consisted
of one (1) common share and one-half (1/2) of a share purchase warrant
with each full warrant entitling the holder to acquire an additional
common share at a price of $0.20 per share until March 1, 2006 and $0.25
per share until March 1, 2007. Romios received net proceeds of
$736,999.98 after paying Canaccord Capital Corporation's (the "Agent")
commission and expenses for the offering.

Canaccord received cash commissions representing 7.35% of the gross
proceeds of the offering and units on the same terms as the working
capital units above valued at 0.65% of the gross proceeds, 150,000
corporate finance units with each corporate finance unit consisting of
one (1) common share and one (1) warrant to acquire a further common
share at a price of $0.20 per share until March 1, 2007 and broker
warrants representing 10% of the securities sold pursuant to the
offering with each broker warrant entitling the holder to acquire a
further common share at a price of $0.20 per share until March 1, 2007.

Romios concurrently closed a non-brokered financing of 535,000
flow-through common shares priced at $0.15 per share for gross proceeds
of $80,250 and 516,667 working capital units priced at $0.15 per unit
for gross proceeds of $77,500 announced on December 22, 2004. The terms
of the units were the same as the brokered units above. The 535,000
flow-through common shares and 216,667 of the working capital units were
purchased by insiders and their families.

In addition, Romios completed the debt settlement with three insiders
announced on November 26, 2004 by issuing 1,350,999 common shares in
exchange for the settling of $202,650 in debt owed to these three
insiders.

The securities issued on all of these transactions are legended and
restricted from trading until July 2, 2005.

As a result of the insider private placement and debt settlement, Tom
Drivas, a director, officer and a shareholder of Romios currently holds
or controls 2,844,263 common shares of Romios, representing 14.2% of
Romios' outstanding capital. He also holds 257,554 options to purchase
common shares. Prior to the recent financing and the acquisition of
Mclymont Mines Inc., Mr. Drivas held 1,884,263 common shares out of
9,697,788 issued and outstanding shares of Romios or 19.4% of
outstanding capital. Mr. Drivas has advised that he may decrease or
increase his beneficial ownership, control, or direction over the common
shares in the capital of Romios through market transaction, private
placement agreements, exercise of convertible securities, other treasury
issuances or otherwise.

The current outstanding capital of the Company is 20,003,435 common
shares.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Romios Gold Resources Inc.
    Tom Drivas
    President and a director of Romios
    (416) 221-4124
    (416) 218-9772 (FAX)
    romios@romios.com
    http://www.romios.com
    The TSX Venture Exchange has neither approved nor disapproved of the
    information contained herein.