Company also seals $60 million five-year credit facility with investor
By Devika Patel
Knoxville, Tenn., April 2 – Red Eagle Mining Corp. said it raised $3.83 million in the second and final tranche a $4.83 million private placement of stock with Orion Mine Finance on Feb. 3. The company raised $1 million on Feb. 3. The deal was slated to take in up to $4 million and was announced on March 25.
The company sold 14,640,112 common shares at C$0.33 each. The price per share is a 13.16% discount to the March 24 closing share price of C$0.38.
Orion also received five-year warrants.
Red Eagle also said it settled a $60 million credit facility with the investor, as announced on March 25. The five-year credit facility will bear interest at Libor plus 750 basis points.
Proceeds will be used for development and construction of the San Ramon Gold Mine.
Red Eagle is a gold exploration and development company based in Vancouver, B.C.
| Issuer: | Red Eagle Mining Corp.
|
| Issue: | Common shares
|
| Amount: | $4,831,237
|
| Shares: | 14,640,112
|
| Price: | C$0.33
|
| Warrants: | For 5 million shares
|
| Warrant expiration: | Five years
|
| Investor: | Orion Mine Finance
|
| Announcement date: | March 25
|
| Settlement dates: | Feb. 3 (for $1 million), April 2 (for $3,831,237)
|
| Stock symbol: | TSX Venture: RD
|
| Stock price: | C$0.38 at close March 24
|
| Market capitalization: | C$23.66 million
|
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