VANCOUVER, July 12, 2017 /CNW/ - Rathdowney Resources Ltd. ("Rathdowney" or the "Company") (TSXV: RTH) announces that it plans to complete a private placement of up to approximately 3,157,894 million ("Units") of the Company at a price of $0.19 per Unit (the "Issue Price") for proceeds of up to approximately $600,000 (the "Offering").  

Each Unit shall consist of one common share in the capital of the Company (a "Share") and one common share purchase warrant (a "Warrant").  Each Warrant shall entitle the holder to purchase one additional Share (a "Warrant Share") at a price of $0.24 per Warrant Share for a period of two years from the date of closing of the Offering.  Finders fees of up to 6% may be payable on a portion of the placement.

The Units, Shares and Warrant Shares will be subject to applicable resale restrictions, including a four month hold period from date of closing of the Offering under applicable Canadian securities laws. Completion of the Offering is subject to regulatory approval, including approval of the TSX Venture Exchange. 

Proceeds will be used to advance permitting activities in Poland and engineering work to progress the Company's Olza zinc-lead-silver project towards feasibility and completion of permit licensing, as well as for general corporate working capital purposes.

About Rathdowney and Project Olza

Rathdowney Resources Ltd. is focused on advancing Project Olza through permitting and into production. Project Olza is located in the Upper Silesian Mining District of southwestern Poland, a world-class region of Mississippi Valley-type zinc-lead deposits and well-developed mining infrastructure.  A railway line through the Olza project-area provides direct access to smelters in Poland, elsewhere in Europe and to tidewater to reach off-shore facilities. 

Strong potential financial returns are indicated for a 6,000 tpd low-cost, bulk-tonnage underground operation and conventional treatment facility, producing two clean, low-iron, marketable concentrates (Preliminary Economic Assessment)¹.  In addition, extensive property-wide historical drilling by the Polish State as well as recent drilling by Rathdowney have shown excellent potential to expand mineral resources to support a long-life mine.  

David Copeland, PEng., Chairman of Rathdowney and a qualified person as defined under NI43-101, has reviewed the technical information in this release.

On behalf of the Board of Directors
David Copeland
Chairman

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address exploration drilling, exploitation activities and events or developments that the Company expects, are forward looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Assumptions used by the Company to develop forward-looking statements include the following: the Olza project will obtain all required environmental and other permits and all land use and other licenses, studies and development of the Olza project will continue to be positive, and no geological or technical problems will occur. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continuity of mineralization, potential environmental issues and liabilities associated with exploration, development and mining activities, uncertainties related to the ability to obtain necessary permits, licenses and title and delays due to third party opposition, changes in government policies regarding mining and natural resource exploration and exploitation, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. For more information on the Company, investors should review the Company's continuous disclosure filings that are available at www.sedar.com.

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¹ For additional details, see Rathdowney's April 20, 2015 news release and December 31, 2014 Preliminary Economic Assessment Technical Report which is filed at www.sedar.com.

SOURCE Rathdowney Resources Ltd.

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