/NOT FOR DISSEMINATION OR DISTRIBUTION IN THE UNITED STATES OR TO UNITED
STATES NEWS WIRE SERVICES./
TSX VENTURE: RRX
CALGARY, Oct. 11 /CNW/ - Ruby Red Resources Inc. ("Ruby Red") announces
that it has completed its previously announced brokered financing (the
"Offering") by way of a Short Form Offering Document in accordance with the
policies of the TSX Venture Exchange. Northern Securities Inc. ("Northern")
acted as lead agent in connection with the Offering.
An aggregate of 2,840,000 units ("Units") of Ruby Red were issued at a
price of $0.70 per Unit for gross proceeds of $1,988,000. Each Unit consisted
of two common shares issued on a "flow-through" basis, one common share and
two non-transferable common share purchase warrants of Ruby Red. Each warrant
entitles the holder to purchase one additional common share of Ruby Red at a
price of $0.35 per share for a period of 24 months from the closing of the
Offering. The net proceeds from the offering will be used to fund Ruby Red's
exploration, development and acquisition programs as well as for general
Of the 8,520,000 common shares of Ruby Red issued pursuant to the
Offering, a total of 2,988,510 common shares are subject to a four month hold
period expiring on February 12, 2008.
Northern received a commission equal to 10% of the gross proceeds
received by Ruby Red from sales of Units pursuant to the Offering. In
addition, Northern and its sub agents also received agent's options to acquire
an aggregate of 284,000 units ("Agent's Units"), exercisable at price of $0.70
per Agent's Unit for a period of 24 months from the closing of the Offering.
Each Agent's Unit is comprised of three common shares and two non-transferable
common share purchase warrants of Ruby Red, with each such warrant entitling
the holder to purchase one common share of Ruby Red at a price of $0.35 per
share for a period of 24 months from the closing of the Offering.
Ruby Red was formed to participate in the acquisition, exploration and
development of mineral claims in the Fort Steele Mining Division of British
Columbia for the purpose of exploring for precious and base metals. Ruby Red
holds 100% working interests in 135 mineral claims (approximately 40,000
hectares), all located within 35 kilometres of Cranbrook, B.C. in the Purcell
and Rocky Mountains. Exploration results to date have been very encouraging
and Ruby Red will continue to focus its efforts on its expanded exploration
program for the balance of 2007.
Except for statements of historical fact, this news release contains
certain "forward-looking information" within the meaning of applicable
securities law. Forward-looking information is frequently characterized by
words such as "plan", "expect", "project", "intend", "believe", "anticipate",
"estimate" and other similar words, or statements that certain events or
conditions "may" or "will" occur. Forward-looking statements are based on the
opinions and estimates of management at the date the statements are made, and
are subject to a variety of risks and uncertainties and other factors that
could cause actual events or results to differ materially from those
anticipated in the forward-looking statements, which include but are not
limited to risks inherent in the mining industry, regulatory and economic
risks, and risks associated with the company's ability to implement its
business plan. The company undertakes no obligation to update forward-looking
information if circumstances or management's estimates or opinions should
change except as required by law. The reader is cautioned not to place undue
reliance on forward-looking statements.
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED, AND DOES NOT ACCEPT
RESPONSIBILITY FOR, THE ADEQUACY OR ACCURACY OF THIS RELEASE.
For further information:
For further information: Randall Tronsgard, Vice-President, Corporate
Development of Ruby Red, at (403) 770-1346