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Royal Road Minerals Ltd updates further on fundraise

Last updated: 02:50 17 Mar 2016 AEDT, First published: 22:50 16 Mar 2016 AEDT

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As reported yesterday, the gold explorer will complete a non-brokered private placement of up to 20mln units of the company at a purchase price of C$0.05 per unit

Royal Road Minerals Limited (CVE:RYR) updated further on its plans to tap the market for up to C$1mln, giving details of the purchase warrants offered and plans for the proceeds.

As reported yesterday, the gold explorer will complete a non-brokered private placement of up to 20mln units of the company at a purchase price of C$0.05 per unit.

Each unit will consist of one share and one-half share purchase warrant, which will entitle the bearer to purchase one ordinary share in Royal Road for C$0.10 up to 24 months from the date of issue.

Tim Coughlin, the group's president and chief executive, said: "Proceeds of this capital raising will be used for initial drill-testing of the company's high-grade La Golondrina gold project in the La Llanada gold district of southern Colombia and to finance further license acquisition initiatives within the region.

"At Golondrina, 60 saw-cut channel samples from four horizontal levels of active underground development extending over an approximately 40 meter vertical interval average 31.1 g/t gold over highly variable but average vein widths of 0.3 meters."

Where sampled, vein zones have returned best results of 21.7g/t gold over 2.2 meters and 11.8g/t gold over 2 meters and vein stockwork zones have returned 43.0g/t gold over 0.7 meters and 12.9g/t gold over 1.25 meters.

"We now need to drill test and continuously sample this 40m interval of underground development from surface to identify the stack frequency of veins and vein zones and extend the mineralization to further collapsed tunnels at depth and laterally along the La Golondrina ridge," he said.

"We are also working on further exploration and mining license acquisition initiatives within the region in order to secure a significant and prospective land position."

Shares in Toronto were unchanged at C$0.065.

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