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Red Pine Exploration Inc. Announces Closing of C$3,779,722 Private Placement Financing and Welcomes Alamos Gold as a Strategic Investor
TORONTO, Dec. 31, 2019 (GLOBE NEWSWIRE) -- Red Pine Exploration Inc. (TSX-V: RPX) (“Red Pine” or the “Company”) is pleased to announce that it has closed its pr
About this update from Rpx Gold Inc.
[{"type":"text","content":" TORONTO, Dec. 31, 2019 (GLOBE NEWSWIRE) -- Red Pine Exploration Inc. (TSX-V: RPX) (“Red Pine” or the “Company”) is pleased to announce that it has closed its previously announced brokered private placement (the “Offering”), pursuant to which the Company has sold an aggregate of (i) 25,892,850 units (the “FT Units”) comprised of one “flow-through” common share (a “FT Share”) of the Company and one-half of one non-flow-through common share purchase warrant (each whole warrant, a “Warrant”) at a price of C$0.035 per FT Unit for gross proceeds of C$906,249.75 and (ii) 82,099,214 non-flow-through units of the Company (the “Non-FT Units” and together with the FT Units, the “Securities”) with each Non-FT Unit being comprised of one common share (issued on a non-“flow-through” basis) and one whole Warrant, at a price of C$0.035 per Non-FT Unit for gross proceeds of C$2,873,472.49, for aggregate gross proceeds to Red Pine in the Offering of C$3,779,722.24. Each whole Warrant is exercisable to acquire one common share at a price of C$0.05 per share for a period of 24 months following the closing date of the Offering. Each FT Share partially comprising the FT Units has been issued on a “flow-through” basis within the meaning of such term in the Income Tax Act (Canada). The Offering was led by Haywood Securities Inc. (the “Agent”). The Offering is subject to the final approval of the TSX Venture Exchange. Alamos Gold Inc. (TSX: AGI) (“Alamos”) has subscribed for 52,995,253 Non-FT Units at a purchase price of C$1,854,833.86 as part of the Offering. Alamos now owns 52,995,253 common shares of the Company, or 11.10% of its issued and outstanding common shares on an undiluted basis, and 52,995,253 common share purchase warrants, or 19.99% of its issued and outstanding common shares on a partially diluted basis. Prior to the Offering, Alamos did not hold any common shares of Red Pine. Alamos and the Company have entered into an investor rights agreement, pursuant to which Alamos, provided that it owns at least a 10% interest in the Company, will be granted certain investor rights including but not limited to: Alamos will have the right to participate in future equity financings of the Company to maintain its pro rata ownership prior to the equity financing. Alamos will have a one-time right, on the first equity financing completed under t...