Rugby Mining Announces Closing of CAD$1 Million Non-Brokered Private Placement

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VANCOUVER, British Columbia, Oct. 29, 2019 (GLOBE NEWSWIRE) -- Rugby Mining Limited (“Rugby” or the “Company”) (TSX-V: RUG) is pleased to announce that it has closed the non-brokered private placement announced September 24, 2019 (the “Private Placement”) subject to TSX.V approval.

Due to exceptional demand, the Company took additional subscriptions over the September 24^th, 2019 announcement and will issue 10,050,000 units (the “Units”) at a price of CAD$0.10 per Unit for gross proceeds of CAD$1,005,000 (the “Offering”). Each Unit consists of one common share in the capital of the Corporation (a “Share”) and one transferable common share purchase warrant (a “Warrant”), entitling the holder to purchase one common share in the capital of the Corporation (a “Warrant Share”) for a period of two years from the Closing Date at a price of CAD$0.17 per Warrant Share, provided that if at any time following the date that is four months from the closing date of the offering, that the closing price of the Company’s common shares on the TSX Venture Exchange is CAD$0.25 or greater per common share during any 10 consecutive trading day period the Warrants will expire at 4.00 p.m. (Vancouver time) on the 30th day after the date on which the Company provides notice of such accelerated expiry to warrantholders, and the warrantholders will have no further rights to acquire any common shares of the Company under the Warrant.

Three directors and three officers of the Company participated in the Offering and will acquire, directly or indirectly, an aggregate of 3,250,000 Units. The participation by insiders in the Offering is considered to be a “related party transaction” as defined under Multilateral Instrument 61-101 (“MI 61- 101”). The transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101, as neither the fair market value of the securities being issued nor the consideration being paid exceeds 25% of Rugby’s market capitalization.

The Company paid CAD$5,250 as finder’s fees in connection with a portion of the Offering.

All securities issuable pursuant to the Offering are subject to a four month hold period expiring from the date of TSX.V approval.

Proceeds of the Offering will be used to fund Rugby’s exploration expenditures including at its Motherlode Project, Argentine and Colombian Projects and for administrative purposes.

For additional information you are invited to visit the Rugby Mining Limited website at www.rugbymining.com

RUGBY MINING LIMITED
Bryce Roxburgh
President and CEO

For further information, please contact:

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