Royal Road closes $5-million private placement

Executive Summary

• Royal Road Minerals Ltd. has closed a non-brokered private placement offering under the Listed Issuer Financing Exemption (LIFE), raising $5 million in gross proceeds.
• The company issued 27,772,523 ordinary shares at a price of $0.18 per share to investors resident in Canada and other qualifying jurisdictions.
• Net proceeds will be used to expand drilling programs in Colombia and the Kingdom of Saudi Arabia.

Key Details

• Transaction Structure: Non-brokered private placement closing under National Instrument 45-106, specifically the Listed Issuer Financing Exemption (LIFE).
• Shares Issued: 27,772,523 ordinary shares.
• Price Per Share: $0.18 CAD.
• Gross Proceeds: $5,000,000 CAD.
• Hold Period: No hold period applies to the shares issued pursuant to the LIFE exemption.
• Broker Compensation:
  • Cash commissions paid: $251,319.23 CAD.
  • Broker warrants issued: 1,396,215 warrants.
  • Warrant Terms: Each warrant entitles the holder to acquire one share at $0.18 per share for a period of 36 months from closing.
• Use of Proceeds: Expansion of drilling programs across Royal Road's properties in Colombia and the Kingdom of Saudi Arabia.
• Related Party Transaction:
  • Insiders subscribed for an aggregate of 4,502,223 shares.
  • Largest shareholder, Rio2 Ltd., maintains its approximately 15% equity stake.
  • The company relied on exemptions from valuation and minority shareholder approval requirements under Multilateral Instrument 61-101 (MI 61-101) as it is not listed on a specified market and insider participation does not exceed 25% of market capitalization.
  • No material change report was filed 21 days prior to closing to expedite the offering.

Notable Quotes

• None provided in the text.