Business
Red Metal Resources Announces Closing of First Tranche Private Placement and Debt Settlement
Vancouver, British Columbia--(Newsfile Corp. - June 19, 2024) - RED METAL RESOURCES LTD. (CSE: RMES) (FSE: I660) (OTC PINK:RMESF) ("Red Metal" or the "Company")
About this update from Red Metal Resources Ltd.
[{"type":"text","content":" Vancouver, British Columbia--(Newsfile Corp. - June 19, 2024) - RED METAL RESOURCES LTD. (CSE: RMES) (FSE: I660) (OTC PINK:RMESF) (\"Red Metal\" or the \"Company\") is pleased to announce that it has closed the first tranche of its previously announced private placement (the \"Offering\") and issued 1,200,000 common shares in the capital of the Company at a price of $0.05 per common share for gross proceeds of $60,000. The Company intends to close a second tranche in the coming weeks. It is intended that the aggregate gross proceeds from the sale of the Offering will be used to fund working capital. The Company also announces that it has completed its previously announced debt settlement with various creditors (the \"Debt Settlement\"), pursuant to which it issued an aggregate of 12,581,865 common shares at a deemed price of $0.05 per Share, and settled an aggregate of $629,093.25 in outstanding indebtedness. The common shares issued in the Offering and the Debt Settlement are subject to a hold period expiring four months and one day from the date of issuance. No finder's fees were paid in connection with the closing of the first tranche of the Offering. The debt settlements with each of Fladgate Exploration Consulting Corporation, Da Costa Management Corp., Gregory Jensen, Brian Gusko and Judith Marian Myers (together, the \"Insider Settlements\") are \"related party transactions\" within the meaning of Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (\"MI 61-101\"). The Insider Settlements are exempt from the valuation requirement of MI 61-101 by virtue of the exemptions contained in section 5.5(b) of MI 61-101 as the Company's common shares are not listed on a specified market and from the minority shareholder approval requirements of MI 61-101 by virtue of the exemption contained in section 5.7(1)(a) of MI 61-101 in that the fair market value of the Insider Settlements will not exceed 25% of the Company's market capitalization. As the material change report disclosing the Insider Settlements is being filed less than 21 days before the transaction, there is a requirement under MI 61‐101 to explain why the shorter period was reasonable or necessary in the circumstances. In the view of the Company, it is necessary to immediately close the Insider Settlements and therefore, such sh...