SOURCE: Royal Standard Minerals, Inc.

RYSMF:OTCBB, Nevada Mining, Nevada gold mining, gold, silver, mine, USA mining

September 07, 2010 09:35 ET

Royal Standard Minerals, Inc. (RYSMF) Has Secured a Credit Facility and Completes a Private Placement Financing

MANHATTAN, NV--(Marketwire - September 7, 2010) -  ROYAL STANDARD MINERALS, INC. (OTCBB: RYSMF) announces today that it has secured a financing, with an international private investment group and current management of the Company to include a "Credit Facility" that will consist of senior secured notes with an 8% per annum interest rate and warrants for $10-$20 million, representing 20-40 units at $500,000 per unit. Also, the funding includes 500,000 warrants per unit priced @ $0.10 per warrant. The term of the notes and warrants will be three years and include interest only payments during the first year of the notes commencing six months after the closing date. During years 2 and 3 the repayment of the notes will include equal monthly principal and interest payments until the notes are repaid. The notes will be secured by RYSMF's properties and physical assets. The documentation and release of funds for the initial funding of the credit facility is expected to be completed on or about October 15, 2010. 

In conjunction with the credit facility as part of a separate transaction the Company has closed a $1.2 million private placement financing that includes 11.2 million units at $0.10/ unit. Each unit will consist of one common share and one common share purchase warrant priced at $0.10 per warrant of the Company. Each Warrant is exercisable into one common share in the capital of the Company (a "Common Share") for a period of three years from the date of the closing.
The use of proceeds will be to continue with the development of RYSMF's Nevada gold-silver properties and for working capital purposes. The Company may be subject to a structuring fee in connection with this financing.

RSM is a natural resource exploration and development company,

For further information contact Mr. Roland Larsen, (775) 487-2454 and/or Mr. Rich Kaiser, Investor Relations, 800-631-8127.

Royal Standard Minerals cautions that statements made in this press release and other forward looking statements made on behalf of the Company may be affected by such other factors including, but not limited to, volatility of mineral prices, product demand, market competition, imprecision of mineral estimates, and other risks detailed herein and from time to time in the Securities and Exchange Commission filings of the Company, C.U.S.I.P. # 780919106

Contact Information

  • Contact:
    Roland Larsen

    Rich Kaiser