Offering with Liberty Metals & Mining, Appian will finance exploration
By Devika Patel
Knoxville, Tenn., Oct. 16 - Red Eagle Mining Corp. said it will conduct an C$11.67 million non-brokered private placement of stock with investor Shanghai Richstone Investment Group Ltd.
The company will sell 21,212,121 shares at C$0.55 each. The price per share is identical to the Oct. 15 closing share price.
Liberty Metals & Mining Holdings LLC will invest C$6.28 million and Appian Natural Resources Fund LP will invest C$3 million.
Proceeds will be used for exploration and development of the Santa Rosa gold project, preparation of an initial NI 43-101 compliant resource estimate, preparation of a preliminary economic assessment, completion of final property payments and general working capital.
Liberty Metals & Mining has also agreed to purchase a 2% net smelter royalty on the company's Santa Rosa gold project for C$8.33 million. Red Eagle Mining may also require Liberty Metals & Mining to purchase an additional 1% royalty for $4.17 million by Dec. 31, 2013. Red Eagle Mining may also repurchase 1% of the royalty for $8.33 million for up to two years from the date of first gold production.
Red Eagle is a gold exploration and development company based in Vancouver, B.C.
| Issuer: | Red Eagle Mining Corp.
|
| Issue: | Common shares
|
| Amount: | C$11,666,667
|
| Shares: | 21,212,121
|
| Price: | C$0.55
|
| Warrants: | 4 million
|
| Warrant expiration: | One year
|
| Warrant strike price: | C$0.55
|
| Investor: | Liberty Metals & Mining Holdings LLC (for C$6.283.303) and Appian Natural Resources Fund LP (for C$3 million)
|
| Pricing date: | Oct. 16
|
| Stock symbol: | TSX Venture: RD
|
| Stock price: | C$0.55 at close Oct. 15
|
| Market capitalization: | C$21.36 million
|
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