SOURCE: Royal Standard Minerals

RYSMF, Gold Mining, Nevada, Silver, Gold,

December 28, 2010 11:00 ET

Royal Standard Plans to Complete a $15 Million Secured Loan Facility

MANHATTAN, NV--(Marketwire - December 28, 2010) - Royal Standard Minerals, Inc. (OTCBB: RYSMF) is pleased to announce that it has signed a term sheet and is currently working toward the completion of a loan agreement with a private investment firm to fund up to US$15,000,000 senior secured loan facility that includes an initial 3 year term. The loan facility would consist of up to US$7.5 million as a senior secured gold loan facility and up to US$7.5 million as a convertible note facility and incur approximately a 7% per annum interest rate. Proceeds of the financing are intended to be used for the further development of the Company's Goldwedge project in Nye County, Nevada as well as the Company's other Nevada projects. 

At Goldwedge in 2011, subject to completion of financing, the Company intends to pursue plant upgrades and changes to include a larger ball mill, another concentrator as well as a tailings dewatering system. The Company has secured all of the permits for the Rapid Infiltration Basin construction as part of the new mine dewatering system. In conjunction with the plant upgrades and changes the Company plans to commence the underground (decline) safety program to include rebolting and shotcrete emplacement as needed in some areas in preparation for continuing the underground development of this property. Plans are to have this work initiated as soon as the loan financing described above has closed. 

The Company will not be proceeding with the proposed financing transactions described in the Company's press release dated September 7, 2010. 

ON BEHALF OF ROYAL STANDARD MINERALS INC.

"Roland Larson" CEO and President

About Royal Standard:

Royal Standard Minerals is exploring and developing gold and polymetallic properties in key mineral districts of Nevada. Three of our properties-Goldwedge, Piñon and Fondaway Canyon-are advanced with established resources.

For further information about this release contact Mr. Rich Kaiser, Investor Relations, 800-631-8127. Visit our website at www.RoyalStandardminerals.com

Royal Standard Minerals cautions that the 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.

Contact Information

  • Contact:
    Rich Kaiser
    800-631-8127