Romarco Receives Final TSXV Approval for Private Placement
October 2, 2006
Not for distribution to US newswire services or for dissemination in the United States
ROMARCO MINERALS INC. ("TSXV: R" - the "Company") Romarco is pleased to announce that it has received TSX Venture Exchange approval for its previously announced private placement (see press releases dated August 23, 28 and 30, and September 6 2006).
A total of 44,910,263 units have been issued for total gross proceeds of C$8,532,950. The terms of the private placement are C$0.19 per unit with each unit consisting of one full common share and one full common share purchase warrant. Each full warrant is exercisable at C$0.30 per share until August 28, 2008. If the shares of the Company trade at C$0.40 or higher for 20 consecutive days, the warrants will expire 30 days following notice to warrant holders. All of the securities will be subject to the customary four month hold period in Canada.
The private placement was led by M Partners Inc. of Toronto, Ontario who received a total commission of $483,458.50 and 2,544,518 broker's warrants. Each broker warrant is exercisable into one common share and one common share purchase warrant, with the same terms as above, for a price of 19 cents for a period of two years.
Zuri-Invest AG of Switzerland was paid a finder's fee of $113,177 and 513,600 warrants. Each warrant is exercisable into one common share at a price of 19 cents for a period of two years.
The proceeds of the private placement will be used to fund the exploration and development work on Romarco's Pinos Gold District in Mexico, drilling of Romarco's Nevada projects, and for general working capital purposes.
This press release is not an offer of securities for sale in the United States. The securities will not be registered under the U.S. Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from the registration under the U.S. Securities Act.
For further information, please contact Diane Garrett, President and C.E.O. at (830) 634-7489 or by e-mail at dgarrett@romarco.com or Mr. Ralf Langner, C.F.O. at (604) 688-9271 or by e-mail at rlangner@romarco.com
ON BEHALF OF ROMARCO MINERALS INC.
Diane R. Garrett
President and C.E.O.
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