Mr. Quentin Yarie reports
RED PINE ANNOUNCES C$5.0 MILLION "BOUGHT DEAL" PRIVATE PLACEMENT OF TRANCHE 1 FLOW-THROUGH SHARES AND TRANCHE 2 FLOW-THROUGH SHARES
Red Pine Exploration Inc. has entered into an agreement with Haywood Securities Inc., as lead underwriter and sole bookrunner, on its own behalf and on behalf of a syndicate of underwriters, pursuant to which the underwriters have agreed to purchase, on a bought deal private placement basis: (i) 18,182,000 tranche 1 flow-through shares of the company at a price of 22 cents per tranche 1 flow-through share; and (ii) 3,704,000 tranche 2 flow-through shares of the company at a price of 27 cents per tranche 2 flow-through share for gross proceeds to the company of up to $5,000,120.
The company has granted the underwriters an option to purchase up to an additional 15 per cent of the offering in any combination of: (i) tranche 1 flow-through shares at the tranche 1 flow-through issue price; and (ii) tranche 2 flow-through shares at the tranche 2 flow-through issue price, exercisable in whole or in part at any time up to 48 hours prior to the closing date.
The gross proceeds from the offering will be used by the company to incur eligible Canadian exploration expenses that will qualify as flow-through critical mineral mining expenditures, as such terms are defined in the Income Tax Act (Canada), related to the company's projects in Ontario. All qualifying expenditures will be renounced in favour of the subscribers of the offered flow-through shares effective Dec. 31, 2023.
The offering is expected to close on or about Dec. 7, 2023, and is subject to certain closing conditions, including, but not limited to, the receipt of all necessary approvals, including the conditional listing approval of the TSX Venture Exchange and the applicable securities regulatory authorities. The offering is being made by way of private placement in Canada. The securities issued under the offering will be subject to a hold period in Canada expiring four months and one day from the closing date of the offering. The offering is subject to final acceptance of the TSX-V.
In consideration for its services, the company has agreed to pay the underwriters a cash commission equal to 6.0 per cent of the gross proceeds from the offering and that number of non-transferable compensation options as is equal to 6.0 per cent of the aggregate number of offered flow-through shares sold under the offering. Each compensation option is exercisable to acquire one common share of the company at a price equal to 19 cents for a period of 24 months from the closing date of the offering.
About Red Pine Exploration Inc.
Red Pine Exploration is a gold exploration company headquartered in Toronto, Ont., Canada. The company's shares trade on the TSX Venture Exchange under the symbol RPX and on the OTCQB market under the symbol RDEXF.
The Wawa gold project is in the Michipicoten greenstone belt of Ontario, a region that has seen major investment by several producers in the last five years. Its land package hosts numerous historic gold mines and is over 6,900 hectares in size. Led by Quentin Yarie, chief executive officer, who has over 25 years of experience in mineral exploration, Red Pine is strengthening its position as a major mineral exploration and development player in the Michipicoten region.
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