Companies also ink C$17 million 'farm-in' agreement for Sivas copper
By Susanna Moon
Chicago, May 16 - Red Crescent Resources Ltd. said it signed a strategic equity investment agreement with Petmin Ltd. for proceeds of C$4.64 million, of which C$1.5 million will be spent on the further development and exploration of Red Crescent's recently acquired Sivas copper project.
Petmin will receive about 9.28 million shares at C$0.50 each for a 10.1% ownership stake in Red Crescent.
The price per share is a 31.58% premium over the company's C$0.38 closing share price on May 13.
Proceeds also will be deployed for development of other projects at Hakkari and Tufanbeyli and for corporate and general purposes.
Red Crescent and Petmin have also signed a "farm-in" agreement, under which Petmin will fund the project development expenses of the Sivas copper project, against a defined plan of exploration and engineering study up to a value of C$17 million, according to a company press release.
The terms are in line with the definitive agreement signed with Gensay, Red Crescent's 25% joint venture partner in RCR Quantum Mining AS, the owner and operator of the Sivas copper project.
The farm-in agreement defines a work plan around proven geophysical anomalies for exploration in four phases.
The agreement "represents another step along the path in alignment with our vision, i.e. to develop into a mid-tier multi-commodity mining company, through organic and acquisitive growth by focusing on a mix of quality, cash producing assets and projects, with a diverse geographical spread of commodities within fundamentally strong and stable economies and that feed into infrastructure development and urbanization globally," Ian Cockerill, executive chairman of Petmin, said in the release.
Red Crescent is a junior mining company based in Ankara, Turkey.
| Issuer: | Red Crescent Resources Ltd.
|
| Issue: | Common stock
|
| Amount: | C$4.64 million
|
| Shares: | 9.28 million
|
| Price: | C$0.50
|
| Warrants: | No
|
| Investor: | Petmin Ltd.
|
| Pricing date: | May 16
|
| Stock symbol: | Toronto: RCB
|
| Stock price: | C$0.38 at close May 13
|
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