Brian: OOPs - special warrant offering NR - I received two NR from them today
REGAL GOLDFIELDS LIMITED
Suite #915 - 20 Adelaide Street East
Toronto, Ontario
M5C 2T6
PRESS RELEASE
CDN: REGL For Immediate Release
February 11, 1998
Toronto, Ontario.........Regal Goldfields Limited (the "Company") (CDN: REGL) announces that, subject to regulatory approval, it is making a rights offering to its shareholders, special warrant holders and certain common share purchase warrant holders of rights to purchase common shares. The rights offering circular has been filed with securities regulatory authorities in the Provinces of Alberta, British Columbia, Nova Scotia, Ontario and Quebec and the record date and expiry date of the offer will be established upon receipt of regulatory approval.
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 exploration program in Cape Breton; (ii) 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 (iii) for general working capital purposes.
The issued and outstanding capital of the Company as at February 9, 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.
For further information, please contact:
Richard W. Brissenden
President
Regal Goldfields Limited
Tel: (416) - 364-1130
Fax: (416) - 364-6745
NO REGULATORY AUTHORITIES OR SIMILAR BODIES HAVE APPROVED OR DISAPPROVED THE INFORMATION CONTAINED HEREIN.
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