TORONTO, July 11 /CNW/ - Randsburg International Gold Corporation (TSX- V:RGZ) announced today that it has agreed to a non-brokered private placement of $500,000 of its securities consisting of the sale of 769,230 flow-through units ("FT Units") at $0.65 per Unit to the MineralFields Group. Proceeds of the financing will be used for the advancement of the Company's Titan iron-titanium-vanadium deposit located in northern Ontario, Canada.
Each Unit is comprised of one flow-through share of the Company, and one non-flow-through common share purchase warrant. Each warrant grants the right to purchase one non-flow-through common share at an exercise price of $1.00 per share within 24 months from the closing date. The Company will pay a 5% cash commission to the finder, Limited Market Dealer Inc., and issue broker options granting the finder the right to purchase 61,538 units on the same terms as the subscriber's units within 24 months from the closing date. The Company will pay the finder a 3% due diligence fee.
"We are very pleased to be entering into this relationship with MineralFields Group", said Michael Opara, President. "This is an important milestone in the growth of Randsburg and we look forward to working with MineralFields Group as we continue to further the Company's projects."
About MineralFields Group
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MineralFields Group (a division of Pathway Asset Management) is a Toronto-based mining fund with significant assets under administration that offers its tax-advantaged super flow-through limited partnerships to investors throughout Canada during most of the calendar year, as well as hard-dollar resource limited partnerships to investors throughout the world. Pathway Asset Management also specializes in the manufacturing and distribution of structured products and mutual funds. Information about MineralFields Group is available at www.mineralfields.com. First Canadian Securities(R), a division of Limited Market Dealer Inc., is active in leading resource financings (both flow-through and hard dollar) on competitive, effective and service-friendly terms, with investors both within, and outside of MineralFields Group.
About Randsburg's Titan Project
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The project has inferred resources totaling 49.0 million tonnes grading 48% Fe(2)O(3) (iron oxide), 14.8% TiO(2) (titanium dioxide), and 0.24% V (vanadium). The estimate was prepared at a cut-off grade of 40% Fe(2)O3 and a specific gravity of 4.29 g/cm(3). An NI 43-101 report, titled "Technical Report, Titan Project, Ontario Canada, dated November 7, 2006, and revised February 12, 2007" can be viewed by going to www.sedar.com and reviewing the Company's public filings.
Dr. R. Ken Germundson, Ph.D, Professional Geoscientist is the Company's Qualified Person as that term is defined under NI 43-101, for the Titan Project. Dr. Germundson has reviewed the contents of this news release as they relate to the Titan Project.
On behalf of the Board of Directors of Randsburg International Gold Corp.
"Michael Opara"
President and Chief Executive Officer
Tel: 416-486-4078
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