NEW YORK, April 20, 2017 /CNW/ - Polygon Mining Opportunity Master Fund (the "Fund") announced today that it has acquired 6,500,000 units (the "Units") of Royal Road Minerals Limited ("Royal Road Minerals") pursuant to a private placement as part of an offering which also included the issuance of 1,000,000 Units to another investor on the same economic terms (the "Offering"). Each Unit consists of one ordinary share in the capital of Royal Road Minerals (each, a "Share") and one-half of one Share purchase warrant (each whole warrant, a "Warrant"). Each Warrant entitles the Fund to acquire one Share at a price of $0.20 for a period of 24 months from the date of issuance. The 6,500,000 Shares and 3,250,000 Warrants acquired by the Fund represent approximately 4.76% of the issued and outstanding Shares on a non-diluted basis and 6.98% of the issued and outstanding Shares on a partially-diluted basis, in each case following the Offering. The Fund is an exempt company existing under the laws of the Cayman Islands that operates as a private investment fund which invests primarily in mining companies and other mineral related businesses and opportunities.
The Fund paid CDN$0.10 per Unit, for a total consideration of CDN$650,000. Immediately after the Offering, the Fund owns 24,604,400 Shares and 3,250,000 Warrants, representing approximately 18.03% of the issued and outstanding Shares on a non-diluted basis and 19.93% of the issued and outstanding Shares on a partially-diluted basis. Prior to the Offering, the Fund owned 18,104,400 Shares, representing 14.03% of the issued and outstanding Shares, and did not own any Warrants.
The Fund subscribed for the Units for investment purposes. In connection with the Fund's subscription for the Units, Royal Road Minerals has agreed to repay amounts outstanding and owing to the Fund by Royal Road Minerals' subsidiary, Caza Gold Corp. ("Caza"), under the promissory note dated May 13, 2016 issued by Caza to the Fund. The Fund may, depending on its investment objectives and duration, as well as market and other conditions, acquire additional Shares, dispose of its Shares in the open market or in privately negotiated transactions, or exercise its Warrants from time to time.
The head office of Royal Road Minerals is located at Suite 30, 4 Wharf Street, St. Helier, Jersey JE2 3NR.
This news release is issued in accordance with the early warning requirements under applicable Canadian securities laws. A copy of the early warning reports required to be filed will be available under the profile of Royal Road Minerals on the System for Electronic Document Analysis and Retrieval at www.sedar.com.
For further information or to obtain a copy of the related early warning reports, please contact:
Polygon Global Partners LLP
4 Sloane Terrace
London SWIX 9DQ
SOURCE Polygon Mining Opportunity Master Fund