Red Pine Exploration Inc. is pleased to announce that it has entered into an agreement with Eventus Capital Corp. under which the Agent has agreed to act on behalf of the Company for a combined private placement of up to 16,670,000 units of the Company at a price of C$0.12 per Unit and a further 20,690,000 common shares of the Company which will qualify as “flow-through” shares pursuant to the Income Tax Act at a price of C$0.145 per FT Share.
Each Unit will consist of one common share of the Company and one common share purchase warrant. Each Warrant will be exercisable for one common share for a period of three years from the closing date at a price of C$0.17. The Unit Offering will provide proceeds of up to C$2,000,400 and the FT Offering will provide proceeds of up to C$3,000,050 for aggregate proceeds to up to C$5,000,450.
The Agent will receive a cash commission on the sale of the Units and FT Shares equal to 7% of the aggregate gross proceeds raised, together with that number of broker warrants equal to 7% of the number of Units and FT Shares placed by the Agent. Each broker warrant will be exercisable for one common share of the Company for a period of two years at a price of C$0.13.5 per share.
The proceeds from the financing will be used to further the exploration work on the Wawa Gold Project. The Company’s exploration objective is to increase the current inferred resource on the property by completing a revised 43-101 compliant resource. The company will continue to define the gold mineralization both in the hanging wall and footwall of Surluga Deposit, by expanding the resource to the North, and by connecting the Surluga Deposit with the other historical mines to the South on the property.
Red Pine Exploration Inc. is a gold and base-metals exploration company headquartered in Toronto, Ontario, Canada. The Company’s common shares trade on the TSX Venture Exchange under the symbol “RPX”. Red Pine has a 60% interest in the Wawa Gold Project with Citabar LLP holding the remaining 40% interest. Red Pine is the Operating Manager of the Project and is focused on expanding the existing gold resource on the property.