THUNDER BAY, ON, April 11 /CNW/ - Red Metal Resources Ltd. (OTCBB:
RMES), a mineral exploration company with copper-gold assets in Chile,
today announced that it has received subscriptions in a private
placement of 6,723,333 units of the company at a price of $0.30 per
unit for gross proceeds of USD$2,017,000.
Each unit consists of one share of common stock and a warrant to
purchase an additional share of common stock of the company at a price
of $0.50 for a period of two years from the closing date, with a call
provision on the warrants.
The Company intends to use the net proceeds from the financing for the
next phase of drilling on Red Metal's advanced Farellon copper-gold
project, an initial phase of exploration on its Mateo project as well
as for general working capital and administrative expenses.
In addition to certain institutional and accredited investors,
participants in the financing include members of Red Metal Resources'
Red Metal has entered into a registration rights agreement with the
investors pursuant to which the Company is obligated to file a
registration statement with the Securities and Exchange Commission
which shall include the common stock sold in the offering as well as
the shares of common stock underlying the warrants sold.
In connection with the closing, the Company paid $58,900 in cash fees
and issued warrants to purchase 196,333 shares of common stock to
Brimberg & Co. Broker warrants are issued on the same terms and
conditions as the warrants included in the unit.
Caitlin Jeffs, P.Geo., CEO of Red Metal Resources, said, "This funding
will enable us to undertake exploration programs to further our
projects which we believe has the potential to add significant value to
This release does not constitute an offer to sell or the solicitation of
an offer to buy the securities, nor shall there be any sale of the
securities in any state in which such offer, solicitation or sale would
be unlawful prior to the registration or qualification under the
securities laws of such state. Any offering of the securities under the
resale registration statement will only be by means of a prospectus.
About Red Metal Resources Ltd.
Red Metal Resources is a mineral exploration company focused on
aggressive growth through acquiring, exploring and developing
copper-gold assets in Chile. Our projects are located in the prolific
Candelaria iron oxide copper-gold (IOCG) belt of Chile's coastal
Cordillera, host to Freeport-McMoRan's Candelaria Mine and Anglo
American's Mantoverde Mine. Red Metal is a fully reporting US public
company quoted on the OTCBB under the symbol RMES. For more
information, visit www.redmetalresources.com.
Except for the statements of historical fact, the information contained
herein is of a forward-looking nature. Such forward-looking information
involves known and unknown risks, uncertainties and other factors that
may cause the actual results, performance or achievement of the company
to be materially different from any future results, performance or
achievements expressed or implied by statements containing
forward-looking information. Accordingly, you should not place undue
reliance on statements containing forward-looking information. The U.S.
Securities and Exchange Commission permits mining companies, in their
filings with the SEC, to disclose only those mineral deposits that a
company can economically and legally extract or produce. We may use
certain terms in our press releases, such as "measured," "indicated,"
and "inferred" resources, which the SEC guidelines generally prohibit
companies from including in their filings with the SEC. Investors are
urged to consider closely the disclosure in our Form 10-K, which may be
obtained from us, or from the SEC website at http://www.sec.gov/edgar.shtml.
SOURCE Red Metal Resources Ltd.
For further information:
Red Metal Resources Ltd.
604-648-0513 or 1-866-907-5403