Deal funds initial work program on copper/cobalt projects in Zambia
By Devika Patel
Knoxville, Tenn., Sept. 14 – Redhawk Resources, Inc. said it will conduct a C$1.05 million non-brokered private placement of units.
The company will sell 15 million units of one common share and a half-share warrant at C$0.07 per unit.
Each whole warrant is exercisable at C$0.12 for two years. The strike price reflects a 100% premium to the Sept. 18 closing share price of C$0.06.
The company also said it entered into an option agreement on four copper/cobalt projects in Zambia held by Copperzone Resources Ltd. on Sept. 13. Redhawk may earn a 55% interest in the projects by making $1.5 million of exploration expenditures over one year and paying $30,000 to Copperzone after completing due diligence.
Proceeds from the placement will be used for the initial work program on the projects and for general working capital.
Based in Vancouver, B.C., Redhawk is a copper explorer.
| Issuer: | Redhawk Resources, Inc.
|
| Issue: | Units of one common share and a half-share warrant
|
| Amount: | C$1.05 million
|
| Units: | 15 million
|
| Price: | C$0.07
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.12
|
| Agent: | Non-brokered
|
| Pricing date: | Sept. 14
|
| Stock symbol: | Toronto: RDK
|
| Stock price: | C$0.06 at close Sept. 18
|
| Market capitalization: | C$8.67 million
|
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