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TORONTO, ONTARIO, January 1, 2013 - Red Mile Minerals Corp. (TSX: V - RDM) ("Red Mile" or the "Company") is pleased to announce the closing of a non-brokered private placement of $206,000 comprised of 820,000 units (the "Units") at an issue price of $0.05 per Unit and 3,300,000 flow-through units (the "Flow-Through Units") at an issue price of $0.05 per Flow-Through Unit (the "Offering"). Each Unit is comprised of one common share and one common share purchase warrant (a "Warrant"), with each Warrant exercisable into a common share at an exercise price of $0.10 for a term of 18 months. Each Flow-Through Unit is comprised of one flow-through share and one-half of one non-flow-through share purchase warrant, with each whole Warrant exercisable into a common share at an exercise price of $0.10 for a term of 18 months.
A finder's fee of 200,000 common shares has been issued in connection with the closing of the Offering.
The gross proceeds from the issuance of the Flow-Through Units will be used to continue exploration activities primarily on the Company's Blue Quartz and Dorset Properties. The proceeds from the issuance of the Units will be used for general working capital purposes.
The securities issued pursuant to the Offering will be subject to a four month hold period from the date of closing of the Offering.
The closing of the Offering remains subject to the approval of the TSX Venture Exchange.
About Red Mile Minerals
Red Mile Minerals is a closely held mineral exploration company with a gold property along the prolific Destor-Porcupine gold-producing region in Ontario and the Dorset Property in Baie Verte, Newfoundland. Red Mile continues to seek additional mineral exploration opportunities where the company's exploration expertise and corporate share structure could substantially enhance shareholder value. 21,445,000 common shares are issued and outstanding.
To access the Company's updated presentation, clink on the link www.redmileminerals.com.
This press release contains forward-looking statements. More particularly, the press release contains forward-looking statements related to the anticipated closing of the Offering and the use of proceeds therefrom. The forward-looking statements contained in this document are based upon certain key expectations and assumptions made by Red Mile, including: expectations and assumptions concerning receipt of required regulatory approvals and the satisfaction of other conditions to the completion of and use of proceeds from the Offering. Although Red Mile believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Red Mile can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the failure to obtain necessary regulatory approvals or satisfy the conditions to closing the Offering.
Additional information on these and other factors that could affect Red Mile's operations and financial results are included in reports, including Red Mile's quarterly and annual reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com). The forward-looking statements contained in this document are made as of the date hereof and Red Mile undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
On behalf of the Board of Red Mile Minerals Corp.
John Hickey, President and CEO
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For more information, please contact:
John V. Hickey, President & CEO, (416) 637-2139
Email: office@redmileminerals.com Website: www.redmileminerals.com
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