Eric Sprott, other investors buy 41 million shares at C$0.10 apiece
By Devika Patel
Knoxville, Tenn., Aug. 23 – Redstar Gold Corp. said on Monday that it will conduct a C$4.1 million non-brokered private placement of stock.
The company will sell 41 million common shares at C$0.10 per share, which is a 16.67% discount to the Aug. 19 closing share price of C$0.12.
Eric Sprott will buy 30 million shares for C$3 million. Chairman Jacques Vaillancourt will also participate.
Settlement of an initial C$2.04 million tranche of 20.4 million shares is expected this week, with a second C$2.06 million tranche of 20.6 million shares expected to settle on Aug. 31.
Proceeds will be used to begin drilling at the Shumagin Gold Zone, for exploration across other known gold zones at the Unga Gold Project, to complete a NI 43-101 Technical Report at the Unga Gold Project and for general working capital.
Redstar is a gold exploration company based in Vancouver, B.C.
| Issuer: | Redstar Gold Corp.
|
| Issue: | Common shares
|
| Amount: | C$4.1 million
|
| Shares: | 41 million
|
| Price: | C$0.10
|
| Warrants: | No
|
| Agent: | Non-brokered
|
| Investor: | Eric Sprott (for C$3 million), Jacques Vaillancourt
|
| Pricing date: | Aug. 22
|
| Settlement date: | Aug. 31
|
| Stock symbol: | TSX Venture: RGC
|
| Stock price: | C$0.12 at close Aug. 19
|
| Market capitalization: | C$31.93 million
|
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