Trading Symbol: TSX-V: RGZ
TORONTO, May 27 /CNW/ - Randsburg International Gold Corporation (TSX-V: RGZ) announced today that it intends to borrow up to $250,000 on a 3 year term loan with interest calculated at 10% per annum secured by a collateral mortgage registered on its "Titan" project located in Flett and Angus Townships, Ontario, together with up to 2,000,000 non-transferable share purchase warrants. Each warrant is exercisable for 1 common share of Randsburg at a price of $0.10 for 2 years from closing. Randsburg may repay the Loan from the 6th month to the 24th month, subject to a 3 month interest bonus. During the final year of the Loan, Randsburg may prepay the Loan without any interest bonus.
The agent for the Loan will receive a fee of 10% of the gross proceeds of the Loan and 100,000, 2 year term brokers' warrants, each for 1 share, exercisable at $ 0.10. The Trustee for the Loan and the Mortgage is an affiliate of the Agent.
Randsburg intends to use the proceeds of the Loan to maintain and advance its mineral properties and the balance for general working capital. It will reserve sufficient funds from the Loan to pay interest during the first year of the Loan.
All securities issued in respect of the Loan or warrants will be subject to a hold period of 4 months and 1 day from the date of closing. The Loan is subject to regulatory approval.
On behalf of the Board of Directors of Randsburg International Gold Corp. "Michael Opara" President and Chief Executive Officer E-mail: [email protected] Website: www.randsburginternational.com The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
Copyright, 2009 Randsburg International Gold Corporation. This news release can be reproduced and retransmitted in whole, with no changes permitted of any kind, including headlines, or the addition of any headlines or other material, and providing it is supplied and made available without charge to the end reader.
%SEDAR: 00007812E