Mr. Mario Bouchard reports
RADISSON ANNOUNCES CLOSING OF A $2.5 MILLION PRIVATE PLACEMENT
Radisson Mining Resources Inc. has closed its previously announced private placement for aggregate gross proceeds of $2,499,999.55. The offering consisted of the issuance of 4,762,655 Class A shares in the capital of the company priced at 20 cents for gross proceeds of $952,531 and 4,274,775 charity flow-through shares each of which qualify as a flow-through share priced at 36.2 cents for gross proceeds of $1,547,468.55.
An investment by the Sunrise SPC -- Marshall Precious Metals Fund SP accounted for the majority of the offering. Following the close of this offering, Marshall Precious is expected to own 5,262,430 shares of Radisson.
"We are delighted to welcome the Marshall Precious Metals Fund SP as a shareholder and are also grateful to existing shareholders that supported the offering. With the close of this offering, our treasury stands at approximately $8.5-million, which will enable us to further strengthen our balance sheet and expand our ongoing drill program. The pace of drilling at O'Brien has picked up with the addition of a third drill rig and we look forward to providing the market with regular updates in the coming months," commented Mario Bouchard,
chief executive officer of Radisson.
About Marshall Precious
Marshall Precious is a mutual fund managed by OP Investment Management Ltd. MPM Capital Management is appointed as the investment adviser to provide investment advices and recommendations to the fund. David Garofalo is the chairman and chief executive officer of MPM Capital.
Use of proceeds
The gross proceeds received by the company from the sale of Class A shares will be used for exploration expenses, general working capital and administrative purposes. The gross proceeds received from the sale of Quebec charity flow-through shares will be used to incur Canadian exploration expenses (CEE) that are flow-through mining expenditures (as such terms are defined in the Income Tax Act (Canada)) on the O'Brien gold project in Quebec, which will be renounced to the subscribers with an effective date no later than Dec. 31, 2020, in the aggregate amount of not less than the total amount of the gross proceeds raised from the issue of flow-through shares.
The company paid finders' fees to Laurentian Bank Securities Inc. for the portion of the offering subscribed to by Marshall Precious.
All securities issued pursuant to this offering are subject to a restricted period expiring on Nov. 10, 2020, under applicable Canadian securities legislation. The offering remains subject to the final approval of the TSX Venture Exchange.
Insiders of the company have subscribed in the offering for a total of 300,000 Class A shares, which constitute related parties transactions within the meaning of Regulation 61-101 -- Protection of Minority Security Holders in Special Transactions and TSX Venture Exchange Policy 5.9 -- Protection of Minority Security Holders in Special Transactions. However, the directors of the company who voted in favour of the offering have determined that the exemptions from formal valuation and minority approval requirements provided for respectively under subsections 5.5(a) and 5.7(1)(a) of Regulation 61-101 can be relied on as neither the fair market value of the shares issued to insiders nor the fair market value of the consideration paid exceed 25 per cent of the company's market capitalization. None of the company's directors have expressed any contrary views or disagreements with respect to the foregoing.
About Radisson Mining Resources Inc.
Radisson is a gold exploration company focused on its 100-per-cent-owned O'Brien project, located in the Bousquet-Cadillac mining camp along the world-renowned Larder-Lake-Cadillac break in Abitibi, Que. The Bousquet-Cadillac mining camp has produced over 21 million ounces of gold over the last 100 years.
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