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Regal Goldfields Limited Company Announcement
TORONTO, ONTARIO--Regal Goldfields Limited (the "Company")
announces that the rights offering that was previously announced
on February 11, 1998 has received approval from the securities
regulatory authorities in the Provinces of Alberta, British
Columbia, Nova Scotia, Ontario and Quebec. As a result of this
approval, the record date of the offer has been set for March 16,
1998 and the expiry date of the offer will be April 8, 1998.
Each registered holder of the Company's common shares will receive
one right for each common share held on the record date. Each
holder of the Company's special warrants will receive one and
one-half rights for each special warrant held on the record date.
Each holder of the 375,000 common share purchase warrants issued
by way of private placement on February 9, 1998 will receive one
right for each common share purchase warrant held on the record
date. Four rights entitle the holder to purchase one common share
at Cdn. $0.14 per share. The maximum number of common shares
issuable pursuant to the rights offering is 3,672,160 common
shares. Assuming all rights are exercised, proceeds of the
offering are anticipated to be approximately $514,000.
Shareholders, holders of special warrants and holders of the
common share purchase warrants who exercise all of their rights
pursuant to the basic subscription privilege will also be
entitled, pursuant to an additional subscription privilege, to
acquire additional shares available as a result of unexercised
rights. Thereafter, to the extent that any rights remain
unexercised, the Company has arranged for the issue to be
underwritten in part by a group of investors, who have agreed to
exercise unexercised rights to acquire up to 1,785,712 shares
pursuant to their stand-by commitments.
The proceeds of the rights offering will be used in part (i) to
fund the Company's application to the Supreme Court of Nova Scotia
to have the revocation by the Nova Scotia government of a mineral
exploration permit held by the Company declared unlawful; and (ii)
for general working capital purposes.
The issued and outstanding capital of the Company as at March 6,
1998 consists of 11,313,643 shares. The Company has outstanding
(i) 2,000,000 special warrants entitling the holder to one share
and one-half of a common share purchase warrant at an exercise
price of $0.20 per share; (ii) warrants to purchase 100,000 shares
at an exercise price of $1.50 per share; (iii) warrants to
purchase 2,780,000 shares at an exercise price of $0.90 per share;
(iv) warrants to purchase 375,000 shares at an exercise price of
$0.25 per share; (v) incentive stock options to purchase 126,000
shares at an exercise price of $1.00 per share; and (vi) incentive
stock options to purchase 1,174,000 shares at an exercise price of
$1.25 per share. As a result of the rights offering, the warrants
and options referred to in (ii), (iii), (v) and (vi) will be
adjusted according to the terms of their agreement.
Regal Goldfields Limited is engaged in exploration for and
development of mineral properties in Canada. It currently has
active exploration programs in northwestern Cape Breton Island,
Nova Scotia and Kidd Township in Timmins, Ontario.
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FOR FURTHER INFORMATION PLEASE CONTACT:
Regal Goldfields Limited
Richard W. Brissenden
President
(416) 364-1130
(416) 364-6745 (FAX)
NO REGULATORY AUTHORITIES OR SIMILAR BODIES HAVE APPROVED OR
DISAPPROVED THE INFORMATION CONTAINED HEREIN. |
