|June 27, 2018|
Rathdowney Announces $230,500 Loan
|June 27, 2018, Vancouver, BC - Rathdowney Resources Ltd. ("Rathdowney" or the "Company") (TSX-V: RTH) announces that it has secured two loans for aggregate proceeds of $230,500 (the "Loan").|
The Company has settled an agreement with Orfo Properties Ltd. ("Orfo"), an arm's length third party, with respect to a $100,000 loan (the "Orfo Loan"). The Orfo Loan is unsecured, will bear interest at a rate of 15% per annum and is repayable immediately on the earlier of: (a) the date of completion by the Company of one or more equity financings raising aggregate gross proceeds in the minimum amount of $1,000,000; (b) the two year anniversary of the advance of the principal amount of the Loan; or (c) immediately on demand if there occurs an Event of a Default which remains uncured.
In connection with the Orfo Loan, Rathdowney will issue to Orfo a loan bonus in the form of 833,333 warrants (the "Bonus Warrants"), each entitling the holder to acquire one common share of Rathdowney for two years at a price of $0.12 per share. The Bonus Warrants will be subject to a four month hold period commencing from the date of issuance thereof. The Orfo Loan and Bonus Warrants are subject to acceptance by the TSX Venture Exchange.
In addition to the Orfo Loan, the Company has settled an agreement with David Copeland, a non-arm's length director and officer of the Company, with respect to a $130,500 loan (the "Copeland Loan") on the same terms as the Orfo Loan, except that no bonus warrants or other bonus compensation is payable to Mr. Copeland under the terms of the Copeland Loan.
The Loan will be used for working capital for Rathdowney.
About Rathdowney and Project Olza
Rathdowney Resources Ltd. is focused on advancing Project Olza through permitting and into production. Project Olza is located in the Upper Silesian Mining District of southwestern Poland, a world-class region in size of Mississippi Valley-type deposits with well-developed mining infrastructure. Easily accessible by paved roads, the Olza project site is a one-hour drive from Krakow, a major city with full services, including an international airport. The deposits at Olza are 25 km from the ZGH zinc smelter at Boleslaw. A railway line runs through the Olza project-area, linking it to the ZGHB smelter and to ports on the Baltic Sea, with access to smelters in the rest of Europe.
Rathdowney is committed to responsible mineral exploration and development as presented through our local Project Olza community team, which provide updates on activities and potential opportunities to local communities, and governments at all levels.
For further details on Rathdowney and Project Olza, please visit our website at www.rathdowneyresources.com or contact Roger Blair, Vice President Investor Relations at 604-684-6365 or toll free (NA) at 1-800-667-2114.
On behalf of the Board of Directors
Neither the 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.