Business
Red Metal Resources Announces Private Placement for up to C$1.0 Million
Vancouver, British Columbia--(Newsfile Corp. - March 25, 2022) - Red Metal Resources Ltd. (CSE: RMES) ("Red Metal" or the "Company") is pleased to announce its
About this update from Red Metal Resources Ltd.
[{"type":"text","content":" Vancouver, British Columbia--(Newsfile Corp. - March 25, 2022) - Red Metal Resources Ltd. (CSE: RMES) (\"Red Metal\" or the \"Company\") is pleased to announce its intention to complete a non-brokered private placement (the \"Offering\") of up to 6,666,667 units (the \"Units\") at a price of C$0.15 per Unit for gross proceeds of up to C$1,000,000. Each Unit will consist of one common share in the capital of the Company (a \"Share\") and one whole transferable common share purchase warrant (a \"Warrant\"). Each whole Warrant will entitle the holder thereof, on exercise, to purchase one common share in the capital of the Company (a \"Warrant Share\") until the close of business on the day which is 24 months from its date of issue at an exercise price of C$0.30 per Warrant Share for the first 12 months from its date of issue and C$0.60 per Warrant Share for the remaining 12 months. Certain insiders of the Company may acquire Units in the Offering. Any participation by insiders in the Private Placement would constitute a \"related party transaction\" as defined under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (\"MI 61-101\"). However, the Company expects such participation would be exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as the fair market value of the Units subscribed for by the insiders, nor the consideration for the Units paid by such insiders, would exceed 25% of the Company's market capitalization. Red Metal intends to use the net proceeds of the Offering to advance Red Metal's flagship Carrizal copper-gold-cobalt property in Atacama, Chile and for working capital purposes. The Company may pay finders' fees on a portion of the Offering, subject to applicable securities legislation. The securities issued under the Offering, and any Shares that may be issuable on exercise of any such securities, will be subject to a statutory hold period expiring four months and one day from the date of issuance of such securities. This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the \"U.S. Securities Act\"), or any state securities laws and m...