By Sheri Kasprzak
New York, May 30 - Red Dragon Resources Corp. priced a C$21.25 million private placement.
The deal includes up to 28,333,333 units at C$0.75 each.
The units are comprised of one share and one half-share warrant. The whole warrants allow for the purchase of another share at C$1.25 each for 18 months.
The expiry of the warrants may be accelerated to 15 days if the weighted average trading price of the stock exceeds C$2.25 for more than 30 consecutive trading days.
Agent Regent Mercantile Bancorp Inc. has a greenshoe for up to 5 million units.
The placement is scheduled to close June 9.
The proceeds will be used for development on the company's key projects and for working capital.
Red Dragon is a precious metal and uranium exploration company with properties in Canada and China.
| Issuer: | Red Dragon Resources Corp.
|
| Issue: | Units of one share and one half-share warrant
|
| Amount: | C$21.25 million
|
| Units: | 28,333,333
|
| Greenshoe: | 5 million
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| Price: | C$0.75
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | 18 months
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| Warrant strike price: | C$1.25
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| Placement agent: | Regent Mercantile Bancorp Inc.
|
| Pricing date: | May 29
|
| Settlement date: | June 9
|
| Stock symbol: | TSX Venture: DRA
|
| Stock price: | C$0.92 at close May 29
|
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