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Closing of non-brokered private placement for $7.3M and 95% conversion of $7.7M convertible debentures to equity both at $0.85 per share

Sep 9, 2019

THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

Rupert Resources Ltd (“Rupert” or “the Company”) is pleased to announce that it has now closed the previously announced non-brokered private placement and is issuing 8,532,940 common shares of the Company (“Common Shares“) at a price of $0.85 per Common Share for gross proceeds of $7,252,999 (the “Private Placement“).

The Company is also pleased to announce that its 5.00% secured convertible debentures issued pursuant to a convertible debenture indenture dated September 6, 2016 (the “Convertible Debentures”) matured at 4:30 p.m. on that day. Holders of over 95% of the Convertible Debentures, equivalent to an outstanding aggregate principal amount of CAD$7,367,500 have exercised their conversion right at a price of $0.85. This has resulted in the issuance by the Company of approximately 8,667,643 Common Shares. The outstanding principal amount of the Convertible Debentures of $340,000 plus accrued and unpaid interest is being settled in cash. 

James Withall, Chief Executive of Rupert Resources said “Rupert has strengthened and simplified its balance sheet with new equity raised and the removal of the overhang caused by the convertible debenture. The team at Rupert is now focussed on an intensive exploration program across the entire Pahtavaara project, targeting further new regional discoveries and extensions to the known resources at the mine.”

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190909_Closing of non-brokered private placement