Romios Gold Resources Inc.
TSX VENTURE : RG
OTC PINK : RMIOF
FRANKFURT : D4R

Romios Gold Resources Inc.

June 09, 2016 15:31 ET

Romios Announces Non-Brokered Offering and First Closing

TORONTO, ONTARIO--(Marketwired - June 9, 2016) - Romios Gold Resources Inc. (TSX VENTURE:RG)(OTC PINK:RMIOF)(FRANKFURT:D4R) ("Romios" or the "Company") is pleased to announce that it has closed the first tranche of a non-brokered private placement with the sale of 2,900,000 flow-through units ("FT Units") at $0.07 per FT Unit for gross proceeds of $203,000. The securities issued are subject to a hold period expiring on October 10, 2016. The Company is Offering up to a further 2,900,000 FT Units for up to a further $203,000 and up to 3,400,000 working capital units (the "WC Units") of the Company at a price of $0.06 per WC Unit for up to $204,000 (collectively, the "Offering"). The Company will leave the Offering open until the earlier of the sale of the WC Units and the remaining FT Units or July 13, 2016.

The funds from the Offering will be used for a drill program on the Company's Lundmark-Akow Lakes property. The drill program will test the significance of the geophysical anomalies which are deeper than those tested in previously drilled holes. See the Company's Press Release dated May 19, 2016. The Lundmark-Akow Lakes claims are located just north of Goldcorp's Muselwhite Mine, within the North Caribou Lake greenstone belt in the Patricia Mining Division, northwestern Ontario.

Each FT Unit was priced at $0.07 and consisted of one (1) common share and one-half (1/2) of one share purchase warrant. Each full Warrant (a "Warrant") entitles the holder to purchase one (1) common share (a "Warrant Share") at a price of $0.15 per Warrant Share until the earlier of: (i) June 9, 2017; and (ii) in the event that the closing price of the Common Shares on the TSX Venture Exchange is at least $0.20 for twenty (20) consecutive trading days, and the 20th trading day (the "Final Trading Day") is at least four (4) months from the Closing Date, the date which is thirty (30) days from the Final Trading Day (the "Trigger Date"). The Company paid cash finder's fees of $4,900 and issued 70,000 broker warrants ("Broker Warrants") in respect of the first closing. Each Broker Warrant entitles the holder to acquire a common share, priced at $0.07 until June 9, 2017.

Each WC Unit is priced at $0.06 and consists of one (1) common share and one (1) common share purchase warrant (a "WC Warrant"). Each WC Warrant entitles the holder to purchase one (1) common share (a "WC Warrant Share") exercisable for a period of one (1) year following the Closing Date, subject to earlier expiry on the Trigger Date, at a price of $0.12 per WC Warrant Share.

Each further FT Unit is priced at $0.07 and consists of one (1) common share and one-half (1/2) of one Warrant. Each full Warrant entitles the holder to purchase one (1) Warrant Share exercisable for a period of one (1) year following the Closing Date, subject to earlier expiry on the Trigger Date, at a price of $0.15 per Warrant Share.

Eligible Finders may receive up to 7% of the value of proceeds of the sale of FT Units or WC Units in cash and up to 7% of the number of WC Units or FT Units sold in the form of broker warrants. Each broker warrant entitles the holder to acquire one (1) common share of Romios at $0.07 for FT Units sold and $0.06 for WC Units sold for a period of one (1) year from the Closing Date.

Insiders of the Company subscribed for 900,000 FT Units of the Offering. The insider private placements are exempt from the valuation and minority shareholder approval requirements of Multilateral Instrument 61-101 ("MI 61-101") by virtue of the exemptions contain in section 5.5(a) and 5.7(1) (a) of MI 61-101 in that the fair market value of the consideration for the securities of the Company issued to the insiders did not exceed 25% of its market capitalization.

All securities issued pursuant to the above referenced private placements are subject to a statutory four month hold period.

About Romios Gold Resources Inc.

Romios Gold Resources Inc., a progressive Canadian mineral exploration company established in 1995, is engaged in precious and base metal exploration primarily focused on gold, silver and copper in its properties in British Columbia centrally located between Galore Creek Mining Corporation's large copper-gold-silver deposit and Barrick's high grade gold mine at Eskay Creek. Romios has other property interests in Ontario, Quebec, and Nevada.

This News Release contains forward-looking statements which are typically preceded by, followed by or including the words "believes", "expects", "anticipates", "estimates", "intends", "plans" or similar expressions. Forward-looking statements are not guarantees of future performance as they involve risks, uncertainties and assumptions. We do not intend and do not assume any obligation to update these forward- looking statements and shareholders are cautioned not to put undue reliance on such statements.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Tom Drivas
    President and Director
    (tel) 416-221-4124
    (fax) 416-218-9772
    (email) romios@romios.com

    Frank van de Water
    Chief Operating Officer and Director
    (tel) (416) 221-4124
    (email) fvandewater@rogers.com